TAXLITIGATOR – Tax Controversy (Civil & Criminal) Report

The 7^th Amendment to the U.S. Constitution states that “[i]n Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved.” Last year, the Supreme Court in SEC v. Jarkesy, 603 U.S. 109 (2024), held that under the 7^th Amendment a person was entitled to a jury trial before the SEC could impose a civil penalty for securities fraud. The Court reasoned that under the common law, an action seeking to collect a monetary remedy for fraud could only be brought in a court of law and not an equity or admiralty court. Since the SEC was seeking a monetary penalty for fraud it had to institute suit in a district court, which provided Jarkesy an opportunity for trial by jury.

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For more information, please contact Robert S. Horwitz at horwitz@taxlitigator.com