Joe Boryshansky Comments on Spike in SEC Administrative Proceedings
Akin Gump litigation partner Joseph Boryshansky spoke with Compliance Intelligence about the recent shift by the Securities and Exchange Commission to bring more enforcement cases in its own administrative forum rather than in federal district courts.
“SEC Shifts Enforcement To Admin Proceedings” reports that two-thirds of the SEC’s enforcement actions in 2013 were handled as administrative proceedings, versus roughly half in 2009. The agency attributes that to the Dodd-Frank Act, which gives it greater authority than it had previously. Boryshansky, a former senior trial counsel in the SEC’s Enforcement Division, says the negative in this is that as a defendant, “you don’t ordinarily get the same opportunities to take affirmative discovery [in an administrative proceeding], such as deposition of the SEC’s witnesses.”
There are, however, some advantages to this new trend. Boryshansky notes that “the administrative law judges who hear the SEC’s cases… are very savvy about the securities law. So if a defendant has a strong case that’s going to be a huge plus.”