Supreme Court to Rule on SEC vs Jarkesy: Implications for Small Investors and Entrepreneurs

Supreme Court to Rule on SEC vs Jarkesy. The upcoming Supreme Court decision in Securities and Exchange Commision vs Jarkesy could reshape the regulatory landscape. This will address SEC’s use of administrative courts and enforcement tactics against small investors and entrepreneurs.

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As the Supreme Court’s decision in SEC vs Jarkesy looms, significant developments have emerged concerning ICAN’s clients and other pivotal cases within the judicial system. These cases spotlight the Securities Exchange Commission’s (SEC) extensive litigation strategies, which many argue overreach their regulatory bounds.

The SEC, with its vast governmental resources, often uses litigation to broaden its regulatory reach. A favorable outcome in the Jarkesy case could curtail the SEC’s advantages in administrative courts and restore fairer due process. However, it is anticipated that the SEC will continue to rely on regulation through enforcement. Consequently, ICAN is intensifying its efforts to defend small investors and entrepreneurs targeted by the SEC.

Defending Small Investors Against the SEC’s Overreach

ICAN’s mission is crucial: to ensure that everyday individuals, often perceived by the SEC as “easy targets,” can resist the regulatory agency’s pressure to settle. These settlements frequently advance the SEC’s agenda at the expense of small business owners and investors. Through strategic litigation, ICAN aims to disrupt the SEC’s historical practice of setting precedents via forced settlements.

Case Spotlight: Joseph Collins and Punch TV

One of ICAN’s notable clients, Joseph Collins, a small business owner, has been embroiled in a lengthy legal battle with the SEC. Despite no allegations of fraud or investor harm, Collins and his company, Punch TV, were labeled as “recidivists” by the SEC in a press release before any judicial ruling. This case underscores the SEC’s aggressive tactics, which often drain the resources of small businesses, pushing them towards financially devastating settlements.

When ICAN and Ed Totino of Baker & McKenzie took over Collins’ defense, they uncovered numerous irregularities in the SEC’s proceedings. The SEC’s reply brief included over 150 pages of new documents and affidavits, which ICAN successfully challenged. The Securities Exchange Commission withdrew these portions in response to ICAN’s motion for sanctions, showcasing the impact of robust legal defense against regulatory overreach.

Supreme Court to Rule on SEC vs Jarkesy, The Broader Implications for Regulation Through Enforcement

The SEC’s tactics in the Collins case are part of a broader strategy to expand regulatory definitions without public rulemaking. This approach has been particularly evident in the SEC’s efforts to redefine the term “dealer.” Historically, investors trading on their own account were not required to register as dealers. The SEC has targeted smaller investors to expand this definition through settlements rather than transparent rule-making. Supreme Court to Rule on SEC v. Jarkesy.

Continuing the Fight for Fair Regulation

ICAN’s ongoing efforts highlight the need for a transparent and fair regulatory environment. By defending strategically selected cases, ICAN aims to pressure the SEC into adhering to fair practices and proper rule-making processes. This not only helps immediate clients but also sets a precedent benefiting the broader business and investor community.

Support ICAN’s Mission – Highest Court to Adjudicate SEC vs. Jarkesy

ICAN’s work, funded by generous supporters, is crucial in this fight. Each case taken on disrupts the SEC’s ability to set harmful precedents through forced settlements, ensuring that regulation evolves in a manner conducive to business growth and innovation.

ICAN’s founder and president, Nick Morgan, expressed gratitude for the continued support that makes their pro bono litigation strategy possible. Through these efforts, ICAN is reining in the SEC’s expansive powers, promoting a fairer regulatory landscape for small investors and entrepreneurs.

The Supreme Court’s decision in SEC v. Jarkesy could address the SEC’s use of administrative courts and restore due process in regulatory proceedings, impacting the agency’s enforcement strategies.

ICAN provides pro bono legal defense for small investors and entrepreneurs targeted by the SEC, challenging unfair regulatory practices and settlements.

What irregularities were found in the SEC’s case against Joseph Collins?

ICAN uncovered that the SEC improperly included over 150 pages of new documents and affidavits in its reply brief, leading to a successful challenge and partial withdrawal of the brief.

Our pro bono litigation strategy is already paying off for ICAN’s first client, small business owner Joseph Collins. (See an update on Joseph’s case below.) And, though we may not be able to protect every person unfairly targeted by the SEC, by taking on critical, strategically selected cases like Joseph’s, ICAN is disrupting the historically easy path the regulator has had to set precedents through forced settlements. With each case we are able to litigate – thanks to the support of our generous partners – we are increasing the pressure on the SEC to regulate in a transparent, fair manner and beginning to corral the agency’s unwieldy powers back within their rightful boundaries.

Why is the definition of “dealer” important? The definition of “dealer” impacts who must register with the SEC. Expanding this definition through enforcement actions rather than rule-making creates uncertainty and can stifle innovation.

How can the public support ICAN’s mission?

Donations enable ICAN to continue pro bono litigation, defending small investors and entrepreneurs against regulatory overreach. ICAN aims to create a fairer regulatory environment by challenging the SEC’s and ensuring transparent and fair processes for regulations. ICAN’s ongoing battle against the SEC’s overreach is crucial for maintaining a fair regulatory environment that fosters innovation and growth. With continued support, ICAN can ensure small investors and entrepreneurs have the legal backing needed to resist undue regulatory pressure.

Supreme Court to Rule on SEC vs Jarkesy