Restrictions on SEC enforcement and state AG’s power to avoid arbitration


Petition this week

This week, we focused on the limitation of the independent power to require the Supreme Court to consider the Security and Transaction Commission to enforce a piece of legislation that has not been expressly authorized by Congress, and the power of state prosecutors to generally prosecute lenders for violation of state laws, otherwise if The arbitration agreement initiated by the individual borrower will cover these laws.

Last year, the Supreme Court Restrict SEC practices Seek illegally earned rewards without deducting legal expenses.exist Alpine Securities Corp. v. Securities and Exchange Commission, Once again asked judges to control the power of the SEC. The petitioners claimed that this was a “power grab” to exercise powers not granted to the agency by Congress.

When Congress promulgated the Bank Secrecy Act, it entrusted the Ministry of Finance to manage and enforce the bill. According to the bill, the Ministry of Finance assists law enforcement agencies in investigating money laundering and other illegal activities by requiring financial institutions and broker-dealers to submit suspicious activity reports. The Ministry of Finance instructs its Financial Crime Law Enforcement Network to manage and enforce the BSA by taking suspicious activities to report law enforcement actions.

Although Congress only authorized the Treasury Department to implement the BSA, the SEC also began to implement the provisions of the bill, although it did not receive the explicit consent of the Treasury Department or Congress. Instead, the SEC relied on the books and records requirements of the Securities Exchange Act of 1934 (15 USC § 78q(a)(1)) To maintain its independent power. In addition, the legal standards applied by the SEC are different from those in the BSA, which is detrimental to the defendant.

The SEC independently filed a civil lawsuit against Alpine, a registered broker-dealer, on the grounds that the company failed to submit certain suspicious activity reports. Alpine argued that the SEC has no power to enforce violations of the BSA, but the US Court of Appeals for the Second Circuit held that the SEC can enforce the bill based on its books and record powers. Alpine insisted that Congress purposefully delegated law enforcement powers to the Treasury Department as a politically responsible administrative agency, and required judges to review to limit the SEC’s power to enforce violations of the BSA.

Next, NC Financial Solutions of Utah, LLC v. Virginia It involves the power of the state attorney general to initiate litigation on behalf of private parties, otherwise these private parties will be bound by the arbitration agreement. The case involved the lender NCFS, which provided loans to more than 47,000 people in Virginia between 2012 and 2018, with interest rates ranging from 34% to 155%. The loan agreement contains extensive arbitration clauses that require separate arbitration. In addition, the arbitration clause includes all claims arising directly or indirectly from the loan agreement and includes claims made by others on behalf of the borrower.

The Virginia Attorney General sued the lender in any case, accusing the illegal borrowing of violations of the Virginia Consumer Protection Act and seeking compensation for individual consumers who agreed to the arbitration clause. The lender argued that the federal arbitration law and state law contract principles prohibit the attorney general from filing lawsuits on behalf of individual borrowers. But the Supreme Court of Virginia rejected this argument, holding that the attorney general is not bound by the arbitration agreement because he is not a signatory to the loan agreement. The lender argued that neither the attorney general nor the borrower should be allowed to “circumvent” the arbitration agreement, and asked the court to review to clarify the FAA’s restrictions and determine whether the state attorney general can sue for personal damages, otherwise only Each borrower obtains it through a separate arbitration action.

These and others Petition this week as follows:

Janis v. United States
21-68
problem: (1) Is the standard condition 12 of the U.S. Sentencing Guidelines codified in USSG § 5D1.3(c)(12), Unconstitutionally delegate the power to the probation officer; (2) Whether the standard condition 12 is unconstitutional and ambiguous.

Alpine Securities Corp. v. Securities and Exchange Commission
21-82
problem: Whether the US Securities and Exchange Commission’s claim to have the independent power to interpret and enforce the “Bank Secrecy Act” is consistent with Congress’s decision to entrust the implementation of the “Bank Secrecy Act” comprehensive anti-money laundering system to the Treasury Department, the executive agency with political responsibility.

California Land Commission v. Davis
21-109
problem: (1) Whether each state agrees to file a lawsuit in the bankruptcy court is found to exist in Central Virginia Community College v. Katz, After the effective date of the debtor’s liquidation plan, a lawsuit against the state filed against the federal bankruptcy law, bankruptcy law, or claims that have not been filed in history, seek monetary compensation from the state Treasury Department “as a core aspect of bankruptcy property management”; ( 2) Should the Supreme Court reconsider Central Virginia Community College v. Katz.

NC Financial Solutions of Utah, LLC v. Virginia
21-111
problem: Can a state attorney general who has not signed an arbitration agreement file the claims covered by the agreement and seek individual relief for these claims on behalf of the signatories of the agreement, so if they are required to arbitrate, they have made these requirements.



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