Office of Administrative Law Judges

Administrative law judges (ALJ), independent judicial officers, conduct hearings and rule on allegations of securities law violations initiated in most cases by the Commission’s Division of Enforcement. After the Commission initiates a public administrative proceeding, it refers cases to the Office of Administrative Law Judges. An ALJ then conducts public hearings at locations throughout the United States in a manner similar to non-jury trials in the federal district courts. Among other actions, ALJs issue subpoenas, rule on motions, and rule on the admissibility of evidence. At the conclusion of hearings, the parties submit proposed findings of fact and conclusions of law. The ALJ prepares an initial decision that includes factual findings and legal conclusions that are matters of public record. Parties may appeal an initial decision to the Commission, which can affirm, reverse, modify, set aside or remand for further proceedings. Appeals from Commission action are to a United States Court of Appeals.

Administrative action: The Commission can seek a variety of sanctions through the administrative proceeding process. The ALJ presides over a hearing and considers the evidence presented by the parties to the proceeding. Following the hearing and the submission of briefs, the ALJ issues an initial decision that contains findings of fact, legal conclusions, and an order that often contains a sanction. Possible sanctions include, but are not limited to, imposition of a cease-and-desist order, suspension or revocation of a broker-dealer or investment adviser registration, an order of censure, a bar from association with a broker or dealer or investment adviser, payment of civil monetary penalties, and disgorgement of ill gotten gains. The parties may appeal all or any portion of the initial decision to the Commission.

ALJ Initial Decisions

ALJ Orders