Aug 24 (Reuters) - A federal appeals court on Monday gave the U.S. Securities and Exchange Commission a victory over its use of in-house enforcement proceedings, rejecting a constitutional challenge by former Assisted Living Concepts Inc Chief Executive Laurie Bebo.
The 7th U.S. Circuit Court of Appeals in Chicago affirmed a lower court judge’s dismissal of the case, in which he said he lacked jurisdiction to hear Bebo’s claim.
Bebo argued that a provision of the 2010 Dodd-Frank law giving the SEC authority to pursue more cases through in-house administrative proceedings was unconstitutional. She also said the appointment process of SEC administrative law judges was unconstitutional. (Reporting by Jonathan Stempel in New York)