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The Supreme Court on Thursday stripped the Securities and Exchange Commission of a major tool in fighting securities fraud in a decision that also could have far-reaching effects on other regulatory agencies.

The justices ruled in a 6-3 vote that people accused of fraud by the SEC, which regulates securities markets, have the right to a jury trial in federal court. The in-house proceedings the SEC has used in some civil fraud complaints, including against Houston hedge fund manager George Jarkesy, violate the Constitution, the court said.

“A defendant facing a fraud suit has the right to be tried by a jury of his peers before a neutral adjudicator,” Chief Justice John Roberts wrote for the court’s conservative majority.

Justice Sonia Sotomayor, who read from her dissent in the courtroom, said that “litigants who seek to dismantle the administrative state” would rejoice in the decision.

Federal agencies that oversee safety in mines and other workplaces are among many that can only impose civil penalties in in-house, administrative proceedings, Sotomayor wrote, joined by Justices Ketanji Brown Jackson and Elena Kagan.

“For those and countless other agencies, all the majority can say is tough luck; get a new statute from Congress,” she wrote.

The case is among several this term in which conservative and business interests are urging the nine-member court to constrict federal regulators. The court’s six conservatives already have done so, including in a decision last year that sharply limited environmental regulators’ ability to police water pollution in wetlands.

Still awaiting decision are cases calling on the court to overturn the 40-year-old ruling colloquially known as Chevron, which has made it easier to sustain regulation of the environment, public, health, worker safety and consumer protection. Some of the same parties that supported Jarkesy at the Supreme Court are calling for Chevron to be overturned.

The SEC was awarded more than $5 billion in civil penalties in the 2023 government spending year that ended Sept. 30, the agency said in a news release. It was unclear how much of that money came through in-house proceedings or lawsuits in federal court.

The agency had already reduced the number of cases it brings in administrative proceedings pending the Supreme Court’s resolution of the case.

The high court rejected arguments advanced by President Joe Biden’s Democratic administration that relied on a 50-year-old decision in which the court ruled that in-house proceedings did not violate the Constitution’s right to a jury trial in civil lawsuits.

The justices ruled in favor of Jarkesy after the SEC appealed a decision in which the New Orleans-based 5th U.S. Circuit Court of Appeals threw out stiff financial penalties against Jarkesy and his Patriot28 investment adviser.

The appeals court found that the SEC’s case against Jarkesy, resulting in a $300,000 civil fine and the repayment of $680,000 in allegedly ill-gotten gains, should have been heard in a federal court instead of before one of the SEC’s administrative law judges.


A court in Russia’s far eastern city of Vladivostok on Wednesday convicted a visiting American soldier of stealing and making threats of murder, and it sentenced him to three years and nine months in prison.

Staff Sgt. Gordon Black, 34, flew to the Pacific port city to see his girlfriend and was arrested last month after she accused him of stealing from her, according to U.S. officials and Russian authorities.

Russia’s state news agencies Tass and RIA Novosti reported that the judge in Pervomaisky District Court in Vladivostok also ordered Black to pay 10,000 rubles ($115) in damages. Prosecutors had asked for a sentence of four years and eight months in prison.

Black’s case occurs amid tensions over Russia’s arrests of American journalists and other U.S. nationals as the fighting in Ukraine continues.

Russia has jailed a number of Americans, including corporate security executive Paul Whelan and Wall Street Journal reporter Evan Gershkovich. The U.S. government has designated both men as wrongfully detained and has been trying to negotiate their release.

Others detained include Travis Leake, a musician who has been living in Russia for years and was arrested last year on drug-related charges; Marc Fogel, a teacher in Moscow who was sentenced to 14 years in prison, also on drug charges; and dual nationals Alsu Kurmasheva and Ksenia Khavana.

The U.S. State Department strongly advises American citizens not to go to Russia.

Black was on leave and in the process of returning to his home base at Fort Cavazos, Texas, from South Korea, where he had been stationed at Camp Humphreys with the Eighth Army.

Cynthia Smith, an Army spokesperson, said Black signed out for his move back home and, “instead of returning to the continental United States, Black flew from Incheon, Republic of Korea, through China to Vladivostok, Russia, for personal reasons.”

Under Pentagon policy, service members must get clearance for any international travel from a security manager or commander.

The U.S. Army said last month that Black hadn’t sought such travel clearance and it wasn’t authorized by the Defense Department. Given the hostilities in Ukraine and threats to the U.S. and its military, it is extremely unlikely he would have been granted approval.


Three Americans accused of being involved in last month’s coup attempt in Congo appeared in a military court in the country’s capital, Kinshasa, on Friday, along with dozens of other defendants who were lined up on plastic chairs before the judge on the first day of the hearing.

The proceedings before the open-air military court were broadcast live on the local television channel.

Six people were killed during the botched coup attempt led by the little-known opposition figure Christian Malanga last month that targeted the presidential palace and a close ally of President Felix Tshisekedi. Malanga was shot and killed soon after live-streaming the attack for resisting arrest, the Congolese army said.

The defendants face a number of charges, many punishable by death, including terrorism, murder and criminal association. The court said there were 53 names on the list, but the names of Malanga and one other person were removed after death certificates were produced.

Alongside Malanga’s 21-year-old son Marcel Malanga — who is a U.S. citizen — two other Americans are on trial for their alleged role in the attack. All three requested an interpreter to translate the proceedings from French to English.

Malanga’s son was the first to be questioned by the judge, who asked him to confirm his name and other personal details. The military official chosen to translate for him was apparently unable to understand English well.

Eventually, a journalist was selected from the media to replace him, but he too had trouble translating numbers and the details of the proceedings.

“He’s not interpreting right. We need a different interpreter who understands English, please,” Marcel Malanga told the judge after the journalist incorrectly translated his zip code.

But no other translator emerged and the defendants had to make do with the journalist, who worked for the national radio. Malanga appeared frustrated and defiant as the interview stumbled ahead.

Tyler Thompson Jr, 21, flew to Africa from Utah with the younger Malanga for what his family believed was a vacation, with all expenses paid by the elder Malanga. The young men had played high school football together in Salt Lake City suburbs. Other teammates accused Marcel of offering up to $100,000 to join him on a “security job” in Congo.

Thompson appeared before the court with a shaved head and sores on his skin, looking nervous and lost as he confirmed his name and other personal details to the judge.

His stepmother, Miranda Thompson, told The Associated Press that the family found out about the hearing too late to arrange travel to Congo but hoped to be present for future court dates. Before this week, the family had no proof he was still alive.

“We’re thrilled with the confirmation,” she said.

Miranda Thompson had worried that her stepson might not even know that his family knew he’d been arrested. On Monday, the U.S. Embassy in Congo told the AP it had yet to gain access to the American prisoners to provide consular services before the trial.


The Supreme Court on Wednesday made it easier for workers who are transferred from one job to another against their will to pursue job discrimination claims under federal civil rights law, even when they are not demoted or docked pay.

Workers only have to show that the transfer resulted in some, but not necessarily significant, harm to prove their claims, Justice Elena Kagan wrote for the court.

The justices unanimously revived a sex discrimination lawsuit filed by a St. Louis police sergeant after she was forcibly transferred, but retained her rank and pay.

Sgt. Jaytonya Muldrow had worked for nine years in a plainclothes position in the department’s intelligence division before a new commander reassigned her to a uniformed position in which she supervised patrol officers. The new commander wanted a male officer in the intelligence job and sometimes called Muldrow “Mrs.” instead of “sergeant,” Kagan wrote.

Muldrow sued under Title VII of the Civil Rights Act of 1964, which prohibits workplace discrimination on the basis of race, sex, religion and national origin. Lower courts had dismissed Muldrow’s claim, concluding that she had not suffered a significant job disadvantage.

“Today, we disapprove that approach,” Kagan wrote. “Although an employee must show some harm from a forced transfer to prevail in a Title VII suit, she need not show that the injury satisfies a significance test.”

Kagan noted that many cases will come out differently under the lower bar the Supreme Court adopted Wednesday. She pointed to cases in which people lost discrimination suits, including those of an engineer whose new job site was a 14-by-22-foot wind tunnel, a shipping worker reassigned to exclusively nighttime work and a school principal who was forced into a new administrative role that was not based in a school.

Although the outcome was unanimous, Justices Samuel Alito, Brett Kavanaugh and Clarence Thomas each wrote separate opinions noting some level of disagreement with the majority’s rationale in ruling for Muldrow.

Madeline Meth, a lawyer for Muldrow, said her client will be thrilled with the outcome. Meth, who teaches at Boston University’s law school, said the decision is a big win for workers because the court made “clear that employers can’t decide the who, what, when, where and why of a job based on race and gender.”

The decision revives Muldrow’s lawsuit, which now returns to lower courts. Muldrow contends that, because of sex discrimination, she was moved to a less prestigious job, which was primarily administrative and often required weekend work, and she lost her take-home city car.

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