Ruling in securities case could mean limits on regulators

By KEVIN McGILL
Associated Press

NEW ORLEANS (AP) — A divided federal appeals court panel in New Orleans says a hedge fund manager fined by the Securities and Exchange Commission was unconstitutionally denied his right to a jury trial. The 2-1 ruling handed down by the 5th U.S. Circuit Court of Appeals says the case against George Jarkesy should have been heard in a court instead of by an SEC administrative law judge. This week’s ruling also said Congress unconstitutionally granted the SEC “unfettered authority” to decide whether the case should be tried in a court. The case is expected to wind up at the Supreme Court and could have broad implications for federal regulatory agencies.