Supreme Court strips SEC of key enforcement power to penalize fraud

Washington — The Supreme Court on Thursday ruled against the Securities and Exchange Commission in a dispute over the agency's ability to use in-house tribunals to seek civil penalties against defendants for securities fraud, stripping the agency of a key enforcement tool.

The court ruled 6-3 against the SEC in the case, finding that the Seventh Amendment entitles a defendant to a jury trial. The court split along ideological lines, with Chief Justice John Roberts writing for the conservative majority.