Document ID: ./input/supremecourt_opinions/opinions/23pdf/22-859new_kjfm.pdf
Page Number: 8.0

Cite as:  603 U. S. ____ (2024) 

3 

Opinion of the Court 

Procedurally,  these  forums  differ  in  who  presides  and 
makes legal determinations, what evidentiary and discov-
ery rules apply, and who finds facts.  Most pertinently, in
federal court a jury finds the facts, depending on the nature
of the claim.  See U. S. Const., Amdt. 7.  In addition, a life-
tenured,  salary-protected  Article  III  judge  presides,  see
Art. III,  §1,  and  the  litigation  is  governed  by  the  Federal 
Rules of Evidence and the ordinary rules of discovery. 

Conversely,  when  the  SEC  adjudicates  the  matter  in-
house,  there  are  no  juries.    Instead,  the  Commission  pre-
sides and finds facts while its Division of Enforcement pros-
ecutes the case.  The Commission may also delegate its role 
as judge and factfinder to one of its members or to an ad-
ministrative  law  judge  (ALJ)  that  it  employs.  See  15 
U. S. C. §78d–1.  In these proceedings, the Commission or
its  delegee  decides  discovery  disputes,  see,  e.g.,  17  CFR 
§201.232(b), and the SEC’s Rules of Practice govern, see 17
CFR §201.100  et seq.  The Commission or its delegee also
determines the scope and form of permissible evidence and 
may admit hearsay and other testimony that would be in-
admissible in federal court.  See §§201.320, 201.326. 

When a Commission member or an ALJ presides, the full 
Commission can review that official’s findings and conclu-
sions,  but  it  is  not  obligated  to  do  so.    See  §201.360;  15 
U. S. C. §78d–1.  Judicial review is also available once the 
proceedings have concluded.  See §§77i(a), 78y(a)(1), 80b– 
13(a).  But such review is deferential.  By law, a reviewing 
court  must  treat  the  agency’s  factual  findings  as  “conclu-
sive” if sufficiently supported by the record, e.g., §78y(a)(4); 
see Richardson v. Perales, 402 U. S. 389, 401 (1971), even 
when they rest on evidence that could not have been admit-
ted in federal court. 

The remedy at issue in this case, civil penalties, also orig-
inally depended upon the forum chosen by the SEC.  Except 
in  cases  against  registered  entities,  the  SEC  could  obtain 
civil  penalties  only  in  federal  court.    See  Insider  Trading