Rep. Davidson Introduces the Due Process Restoration Act of 2017
Media Contact: Alexei Woltornist (202)225-6205
WASHINGTON, DC - Today, Rep. Warren Davidson (R-OH) introduced the Due Process Restoration Act of 2017. The bill will provide respondents in SEC enforcement cases with the option to have their proceedings advance in a federal district court instead of internal SEC administrative courts.
Currently, respondents must go through the SEC administrative courts, often costing millions in lawyer fees, before they can appeal to a federal district court. The Dodd-Frank Act, passed in 2010, granted the SEC expanded authority to impose civil penalties using their internal court system.
The SEC’s administrative proceedings do not afford many commonplace due process protections. For example, administrative proceedings do not allow for the option of trial by jury. They only offer limited access to government evidence, and they do not protect against unreliable evidence, such as hearsay.
“Due process should be afforded at every level to prevent government overreach,” said Davidson. “Whether it is the SEC, CFPB, or any other government institution, no government bureaucracy should be given the power of judge, jury, and executioner.”
The internal justice system of the SEC has been criticized repeatedly by defendants, SEC judges, and U.S. district judges.
Rep. Scott Garrett previously sponsored the bill in the 114th Congress. It garnered the support of the National Association of Criminal Defense Lawyers and the U.S. Chamber of Commerce.
The bill will be referred to the House Committee on Financial Services.