Among the many, many provisions of Dodd-Frank is an awfully useful one for the SEC, allowing the regulator to force any defendant to play on its home-field. This is vexing to those defendants. Unfortunately for them, the law is the law.
The reason for choosing one venue or another is completely within the S.E.C.’s discretion. The defendants’ argument is that the decision violates due process by depriving them of discovery and the opportunity for a jury to decide the case – something that was afforded to others accused of the same violations.
But the Federal District Court in Manhattan refused to stop the administrative proceeding.