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Page Number: 7.0

2 

SEC v. JARKESY 

Opinion of the Court 

881, 78a et seq.; 54 Stat. 847, 80b–1 et seq.  These Acts re-
spectively govern the registration of securities, the trading 
of  securities,  and  the  activities  of  investment  advisers. 
Their protections are mutually reinforcing and often over-
lap.  See Lorenzo v. SEC, 587 U. S. 71, 80 (2019).  Although
each regulates different aspects of the securities markets, 
their pertinent provisions—collectively referred to by regu-
lators as “the antifraud provisions,” App.  to Pet. for Cert.
73a,  202a—target  the  same  basic behavior:  misrepresent-
ing or concealing material facts.

The  three  antifraud  provisions  are  Section  17(a)  of  the 
Securities Act, Section 10(b) of the Securities Exchange Act,
and  Section  206  of  the  Investment  Advisers  Act.  Section 
17(a)  prohibits  regulated  individuals  from  “obtain[ing]
money or property by means of any untrue statement of a
material fact,” as well as causing certain omissions of ma-
terial fact.  15 U. S. C. §77q(a)(2).  As implemented by Rule
10b–5, Section 10(b) prohibits using “any device, scheme, or
artifice to defraud,” making “untrue statement[s] of . . . ma-
terial  fact,”  causing  certain  material  omissions,  and  “en-
gag[ing] in any act . . . which operates or would operate as
a fraud.”  17 CFR §240.10b–5 (2023); see 15 U. S. C. §78j(b). 
And finally, Section 206(b), as implemented by Rule 206(4)–
8, prohibits investment advisers from making “any untrue
statement of a material fact” or engaging in “fraudulent, de-
ceptive, or manipulative” acts with respect to investors or
prospective investors.  17 CFR §§275.206(4)–8(a)(1), (2); see 
15 U. S. C. §80b–6(4).

To  enforce  these  Acts,  Congress  created  the  SEC.    The 
SEC may bring an enforcement action in one of two forums. 
First, the Commission can adjudicate the matter itself.  See 
§§77h–1, 78u–2, 78u–3, 80b–3.  Alternatively, it can file a
suit  in  federal  court.    See  §§77t,  78u,  80b–9.   The  SEC’s 
choice  of  forum  dictates  two  aspects  of  the  litigation:  The 
procedural  protections  enjoyed  by  the  defendant,  and  the
remedies available to the SEC.