A financial radio host and investment adviser scored a big win on Thursday when the Supreme Court ruled that administrative judges appointed by low-level staffers are unconstitutional.
The 7-2 decision could have far-reaching ramifications as there are roughly 2,000 administrative judges meting out civil justice across the US.
President Trump backed the case brought by San Diego investment adviser Raymond Lucia, whose “Buckets of Money” strategy misled investors, the Securities and Exchange Commission claimed in 2012.
In 2013, SEC Administrative Judge Cameron Elliot barred Lucia from the industry and made him pay a $300,000 fine.
But Lucia’s team argued that the appointment of the SEC’s in-house judge was unconstitutional.
“We fought a very good, long, hard fight on a very serious constitutional issue, and we won,” Lucia told The Post.
As a result of Thursday’s ruling, Lucia is entitled to a new hearing, Justice Elena Kagan, writing for the majority, ruled.
“We are thrilled with the result, which is a victory for the rule of law, constitutional accountability, and liberty,” Mark Perry, Lucia’s lawyer, said in a statement.
The SEC’s in-house courts have been controversial for some time.
Most famously, private equity financier Lynn Tilton of Patriarch Partners battled with the SEC in 2015 after the agency accused her of hiding the poor performance of her portfolio of distressed debt to reap $200 million in illicit fees.
Tilton denied the allegations and unsuccessfully fought to keep the case from an administrative judge.
But Tilton ultimately prevailed over the regulator in a three-week hearing held in Manhattan federal court in the fall of 2016.
Nevertheless, the so-called “Diva of Distressed Debt” maintains that the in-house courts were “unfair and unconstitutional.”
Tilton, through a spokesperson, told The Post she was “gratified” by the Supreme Court’s decision.
“I always believed the system was wrong and had to be challenged… Now, no one else will ever have to go through what I had to endure in order to get justice,” Tilton said.
Her efforts were not unnoticed by Lucia.
“Without her case, I wouldn’t be where I am today,” Lucia said.
Reps from the SEC said they are reviewing the decision.