In this episode of Unwritten Law, NCLA President and Chief Legal Officer Mark Chenoweth and Senior Litigation Counsel John Vecchione are joined by Senior Litigation Counsel Russ Ryan to discuss Michael Sztrom and David Sztrom v. SEC, a case raising fundamental questions about administrative power and the right to a fair hearing.

After settling an SEC enforcement action in federal court, the Sztroms were subjected to a second, follow-on administrative proceeding that could bar them from the securities industry—based on the same underlying allegations. Russ explains NCLA’s amicus brief supporting their appeal and why the case challenges the structure of SEC enforcement.

The discussion focuses on whether individuals are entitled to an Article III court and jury trial when the government seeks to impose severe penalties such as industry bans—even when those penalties are labeled “non-monetary.” The episode also explores how SEC settlement practices limit defendants’ ability to challenge allegations, effectively precluding meaningful defense in subsequent proceedings.

Mark, John, and Russ examine how this case builds on recent Supreme Court precedent, why agency adjudication raises serious constitutional concerns, and what’s at stake if courts allow administrative prosecutions to proceed without full judicial safeguards.