Advancing American Freedom led a coalition of 27 other amici in Lemelson v. SEC fighting against the Securities and Exchange Commission’s (SEC) abuse of power in refusing to pay the legal fees of Father Emanuel Lemelson.
After a decade of litigation against a Greek Orthodox priest, the SEC failed to convince a jury of most of its charges against him. If the SEC wins this case, it will reward the SEC strategy of punishing those it does not like by giving targets who assert their innocence an offer they can’t refuse: a massive settlement or overwhelming legal bills.
“While the jury denied the SEC the ludicrous fine it sought, Father Lemelson’s seven-figure legal costs send a message to future targets that fighting for their rights in court against the SEC will cost them one way or another,” said AAF General Counsel J. Marc Wheat. “If the courts refuse to award Father Lemelson attorney’s fees, despite his prevailing against all of the SEC’s most important charges, the SEC’s abusive powers will only be magnified.”
In June, AAF’s brief in SEC v. Jarkesy argued that requiring targets to litigate through the SEC’s in-house kangaroo courts was a miscarriage of justice. The Supreme Court agreed, clawing back significant power from the administrative state’s in-house ‘administrative law judges’ (ALJs) requiring instead, as the Constitution requires, that civil actions alleging fraud be brought in front of independent Article III courts.
Read the full brief here.