The SEC's inspector general has not found evidence to support allegations of bias in the agency's administrative proceedings, but will continue its investigation, said an interim report released to commissioners Aug. 5.
The investigation began June 30 “as a result of heightened interests in ongoing SEC administrative proceedings,” the inspector general office report said. “The office of investigations is still gathering additional facts,” it said.
Securities and Exchange Commission lawyers said in court documents filed Monday that they will move forward with an administrative proceeding against former Standard & Poor's Ratings Services Director Barbara Duka, despite a lawsuit challenging its constitutionality.
U.S. District Judge Richard Berman gave the SEC an opportunity to “cure” its process for appointing administrative judges, but SEC lawyers said in court documents that while the commission “may decide in due course whether SEC ALJ's appointments violate the Constitution, and if so, the appropriate remedy for such a violation … it has not taken any public action on these questions.”
