Lucia v. SEC

The SEC (defendant) charged Raymond Lucia (plaintiff) with securities-law violations in an administrative proceeding before an SEC administrative law judge (ALJ) who, though holding a statutorily created career appointment, was hired by SEC staff rather than appointed by the President, a department head, or the SEC commissioners; the ALJ made factual findings, found Lucia liable, and imposed significant sanctions, with the decision becoming final SEC action once the full Commission declined to review it. Lucia argued the ALJ was an Officer of the United States who had to be appointed under the Constitution's Appointments Clause, an argument the SEC rejected as ALJs being mere employees, and which a federal appeals court also rejected before the Supreme Court granted certiorari.