A Wall Street Journal analysis reveals the SEC's in-house
judges have ruled against the agency more often in recent months.
The analysis shows the five SEC administrative-law judges found for
the agency for 67% of defendants in contested cases for the year
through September, with some rulings still to come. That success
rate is markedly lower than in any of the previous four fiscal
years, when the agency each year won against between 82% and 100%
of defendants in its in-house court, the analysis found. A
potential reason behind the change stems from the SEC judges
wanting to dispel the perception they are "sitting in the
pocket of government," which legal experts say the SEC risks
undermining because of its tactics in fighting a series of
challenges in the federal courts to its internal tribunal. SEC
officials say their judges are impartial and part of a "very
fair" system, pointing to their recent losses in their
internal tribunal as evidence of the judges' willingness to go
against the agency.
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