Supreme Court Justices Express Skepticism About SEC’s In-House Courts

The U.S. Supreme Court on Wednesday heard arguments in a case that threatens to undermine the Securities and Exchange Commission’s in-house judicial system, with several conservative justices posing their sharpest questions to the deputy solicitor general defending the program.

The case was brought by George Jarkesy, a hedge fund manager the SEC barred from the industry after an administrative court determined that he had committed fraud. Jarkesy challenged the constitutionality of the SEC’s administrative law judges, or ALJs,…