The US supreme court on Thursday stripped the Securities and Exchange Commission (SEC) of a major tool in fighting securities fraud in a decision that could have far-reaching effects on other regulatory agencies.
The justices ruled in a 6-3 vote that people accused of fraud by the SEC, which regulates securities markets, have the right to a jury trial in federal court. The in-house proceedings the SEC has used in some civil fraud complaints violate the constitution, the court said.
