Second Circuit – Invalidating judgment: SEC v. Romeril

Listen to this article

United States Court of Appeals for the Second Circuit

Invalidating judgment

Consent order – Jurisdiction

SEC v. Romeril

19-4197-cv

Judges Livingston, Chin, and Bianco

Background: In 2003, the Securities and Exchange Commission brought a civil enforcement action against the defendant alleging securities fraud. The defendant consented to the entry of a final judgment against and agreed not to deny any of the factual allegations in the complaint. He now appeals from the denial of a motion to invalidate the judgment on the basis that it incorporated a gag order that violated the First Amendment and his right to due process.

Ruling: The Second Circuit affirmed. The court held that the defendant failed to show either a jurisdictional error or a due process violation as required by statute. Specifically, the defendant had acknowledged the court’s jurisdiction over him and the subject matter of the action and he had notice and an opportunity to be heard and executed the consent and waived his right to trial while represented by counsel.

Jeffrey A. Berger, of the Securities and Exchange Commission, for the plaintiff-appellee; Margaret A. Little, of the New Civil Liberties Alliance, for the defendant-appellant.