A United States federal court in New York upheld the right of the Securities and Exchange Commission to bring enforcement actions before an administrative law judge, as opposed to a federal court. Previously, Wing F. Chau and his firm, Harding Advisory LLC, had been sued by the SEC related to alleged misrepresentations made in connection with collateralized debt obligations. In response, Mr. Chau and Harding filed an action in federal court to enjoin the SEC from going forward, claiming that an enforcement proceeding in an administrative tribunal deprived them “of their rights of due process and equal protection of law.” Mr. Chau and Harding were unsuccessful in stopping their administrative hearing from proceeding, and it is now completed with a decision apparently soon expected. In this action, the court dismissed Mr. Chau’s and Harding’s complaint entirely saying it lacked subject matter jurisdiction to hear the case. According to the court, the plaintiffs’ right to appeal an adverse decision first to the SEC and then to a US federal appellate court are sufficient to address plaintiffs’ constitutional law concerns. In holding against plaintiffs, the Court noted it “has not considered any views concerning the proper or wise allocation of interpretive functions between the Commission and the courts. Those are policy matters committed to the legislative and executive branches of government.”