It’s not been a great week for the SEC’s in-house judicial system. First, one of its own very impartial and independent judges said some kinds of insider trading are just bros being bros and things being "all good in the hood" and not illegal. Then, yesterday, the judge who freed Tom Brady for “several legal deficiencies” in the NFL’s “fundamentally unfair” and illegal process basically said he thinks even less highly of the SEC's in-house court.
Judge Berman on Thursday rejected an SEC challenge to his earlier decision to impose a halt on a case against Barbara Duka, a former Standard & Poor’s Ratings Services executive….
Judge Berman is one of two federal judges to have granted halts to SEC in-house cases. Both judges said the SEC’s system of having its in-house judges named by the staff, rather than the agency’s commissioners, may violate the constitution. The SEC is appealing these rulings.