As we discussed in a recent client alert, the U.S. Court of Appeals for the Tenth Circuit held on December 27, 2016, in Bandimere v. SEC, that the Securities and Exchange Commission’s use of administrative law judges (“ALJs”) to adjudicate enforcement actions is unconstitutional.  The decision has created a circuit split that breathes new life into an independent constitutional ground on which the D.C. Circuit or the U.S. Supreme Court could decide PHH Corp., et al. v. Consumer Financial Protection Bureau without reaching the controversial issues of the bureau’s structure and CFPB Director Richard Cordray’s status.
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