WASHINGTON, DC - Legislation introduced by Congressman Warren Davidson (OH-08), the Due Process Restoration Act of 2017 H.R. 2128, cleared the House Financial Services Committee today with a 31 to 20 vote and will next head to the House floor for a full vote.

 

This bill directs the U.S. Securities and Exchange Commission (SEC) to provide all parties involved in enforcement cases with the option to have their proceedings advance to a federal district court instead of internal SEC administrative courts.

 

“America was founded on pillars of freedom and fairness where no one person – especially a government bureaucrat – has the power of judge, jury, and executioner,” said Davidson. “As Americans, our right to a fair trial is as fundamental as our right to breathe. I look forward to this bill swiftly making its way to President Trump’s desk and being signed into law.”

 

The Due Process Restoration Act of 2017 H.R. 2128 is supported by the U.S. Chamber of Commerce, American Securities Association, and the American Civil Liberties Union.

 

Currently, defendants must go through the SEC administrative courts before appealing to a federal district court. This is an expensive process. SEC administrative proceedings offer minimal due process protections like allowing for the option of trial by jury. The proceedings offer limited access to government evidence, and do not protect against unreliable evidence such as hearsay.

 

In June, the Supreme Court ruled that the SEC's appointment of administrative law judges is unconstitutional. 

 

 

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