SEC Ratifies Appointment of Administrative Law Judges

The Securities and Exchange Commission today announced that it has ratified its prior appointment of Chief Administrative Law Judge Brenda Murray and Administrative Law Judges Carol Fox Foelak, Cameron Elliot, James E. Grimes, and Jason S. Patil.

On Nov. 29, 2017, the Office of Solicitor General submitted a brief in the Supreme Court in Raymond J. Lucia and Raymond J. Lucia Companies Inc. v. Securities and Exchange Commission (No. 17-130) asking the Court to decide whether the Commission’s ALJs are inferior officers who must be appointed consistent with the Appointments Clause of the Constitution. The Solicitor General’s brief takes the position that the Commission’s ALJs are inferior officers.   By ratifying the appointment of its ALJs, the Commission has resolved any concerns that administrative proceedings presided over by its ALJs violate the Appointments Clause. The Commission Order also directs the ALJs to review their actions in all open administrative proceedings to determine whether to ratify those actions.

SEC Order: https://www.sec.gov/litigation/opinions/2017/33-10440.pdf