This case arises out of the SEC’s effort to subject Michelle Cochran to a second unconstitutional enforcement proceeding after the Supreme Court concluded in Lucia v. SEC, 138 S. Ct. 2044 (2018), that the administrative law judge (ALJ) who presided over her first proceeding was unconstitutionally appointed in violation of Article II…

…While Ms. Cochran’s proceeding was pending, the Supreme Court decided Lucia v. SEC, voiding the enforcement proceeding against the petitioner and holding that he was entitled to a hearing before a new, properly appointed ALJ or before the Commission itself. 138 S. Ct. at 2054–55. Recognizing that the same problem existed with all of its ALJs, the SEC attempted to “ratify” the ALJs’ previous appointments, and then it reassigned all pending enforcement matters, including Ms. Cochran’s, to new ALJs.

The reinstituted proceeding against Ms. Cochran is just as unconstitutional as the original proceeding, however—and the SEC knows it…

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