Defendants continue to pound nails into what may be to be the SEC’s coffin that its administrative proceedings are unconstitutional.  If the genie is out of the bottle it’s hard to tell what the far reaching implications might be.

Most recently the SEC stayed the administrative proceeding against well-known fund manager Lynn Tilton. It’s hard to tell why though, as the Second Circuit’s order is one sentence long. The docket reveals that Tilton argued that the Seventh Circuit precedent in the Bebo case was wrongly decided, and since the Commission recently issued an opinion in Lucia that its administrative proceedings are constitutional it is useless to have Tilton pursue her claims in an administrative forum.