D.C. Circuit Court petition by NCLA to reinstate the first post-Jarkesy lawsuit against SEC's "follow-on" adjudications
News Article: NCLA Challenges SEC's Administrative Prosecution in D.C. Circuit
The New Civil Liberties Alliance (NCLA), a nonpartisan, nonprofit civil rights group, has filed an opening brief with the U.S. Court of Appeals for the D.C. Circuit, aiming to reinstate a lawsuit challenging the Securities and Exchange Commission's (SEC) "follow-on" enforcement proceeding against Reverend Fr. Emmanuel Lemelson.
NCLA's litigation and pro bono advocacy are aimed at taming the unlawful power of state and federal agencies and restoring Americans' fundamental rights. In this case, they believe the SEC is violating Lemelson's Seventh Amendment jury-trial rights and illegally trying to prosecute him a second time for the same alleged offenses.
The district court dismissed the lawsuit due to lack of jurisdiction and failure to state a claim. However, NCLA argues that the dismissal cannot be reconciled with the Supreme Court's 2023 decision in Cochran v. SEC and the 2025 decision in Jarkesy v. SEC. The organisation is asking the D.C. Circuit to apply these Supreme Court precedents to prohibit SEC from continuing its unlawful administrative prosecution against Lemelson.
The SEC's use of this administrative proceeding is seen as a seizure of judicial power in violation of Article III of the Constitution. The ALJ overseeing the proceeding is unconstitutionally insulated from presidential control due to multiple levels of tenure protection.
Mark Chenoweth, President of NCLA, and Russ Ryan, Senior Litigation Counsel at NCLA, are involved in the case. Ryan has expressed his belief that the SEC is not pleased with the losses in the Cochran and Jarkesy cases to NCLA and their allies.
The mission of NCLA is to protect constitutional freedoms from violations by the Administrative State. The organisation was founded by legal scholar Philip Hamburger.
It is not specified in the available search results who the Administrative Law Judge overseeing the SEC's "follow-on" proceeding against Rev. Fr. Emmanuel Lemelson is. The SEC is threatening to bar or suspend Lemelson from the securities industry using this administrative proceeding.
The D.C. Circuit Court is being urged by NCLA to reverse the district court's decision and uphold the Supreme Court precedents established in the Cochran and Jarkesy cases. The SEC's prosecutions, according to the Supreme Court's decisions, require such proceedings to be adjudicated in Article III courts with juries. NCLA's case against the SEC is based on this belief.
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