Document ID: ./input/supremecourt_opinions/opinions/17pdf/17-130_4f14.pdf
Page Number: 5.0

2 

LUCIA v. SEC 

Opinion of the Court 

An ALJ assigned to hear an SEC enforcement action has
extensive  powers—the  “authority  to  do  all  things  neces-
sary  and  appropriate  to  discharge  his  or  her  duties”  and 
ensure  a  “fair  and  orderly”  adversarial  proceeding.
§§201.111,  200.14(a).    Those  powers  “include,  but  are  not
limited  to,”  supervising  discovery;  issuing,  revoking,  or
modifying  subpoenas;  deciding  motions;  ruling  on  the
admissibility  of  evidence;  administering  oaths;  hearing 
and  examining  witnesses;  generally  “[r]egulating  the
course  of ”  the  proceeding  and  the  “conduct  of  the  parties
and 
for 
“[c]ontemptuous  conduct”  or  violations  of  procedural  re-
quirements.  §§201.111, 201.180; see §§200.14(a), 201.230.
As  that  list  suggests,  an  SEC  ALJ  exercises  authority 
“comparable to” that of a federal district judge conducting 
a  bench  trial.  Butz  v.  Economou,  438  U. S.  478,  513 
(1978).

counsel”;  and 

sanctions 

imposing 

their 

After  a  hearing  ends,  the  ALJ  issues  an  “initial  deci-
sion.”  §201.360(a)(1).  That decision must set out “findings
and  conclusions”  about  all  “material  issues  of  fact  [and] 
law”; it also must include the “appropriate order, sanction,
relief,  or  denial  thereof.”  §201.360(b).  The  Commission 
can then review the ALJ’s decision, either upon request or 
sua sponte.    See  §201.360(d)(1).    But  if  it  opts  against 
review, the Commission “issue[s] an order that the [ALJ’s]
decision has become final.”  §201.360(d)(2).  At that point, 
the  initial  decision  is  “deemed  the  action  of  the  Commis-
sion.”  §78d–1(c). 

This  case  began  when  the  SEC  instituted  an  adminis-
trative  proceeding  against  petitioner  Raymond  Lucia  and 
his  investment  company.  Lucia  marketed  a  retirement 
savings strategy called “Buckets of Money.”  In the SEC’s 
view,  Lucia  used  misleading  slideshow  presentations  to
deceive prospective clients.  The SEC charged Lucia under
the Investment Advisers Act, §80b–1 et seq., and assigned 
ALJ  Cameron  Elliot  to  adjudicate  the  case.  After  nine