A conservative attack on government regulation reaches the Supreme Court

The Supreme Court is hearing arguments in a challenge to the Securities and Exchange Commission’s ability to fight fraud, part of a broad attack on regulatory agencies led by conservative and business interests. The case before the justices Wednesday involves the Biden administration’s appeal of a lower-court ruling that threw out stiff financial penalties imposed on hedge fund manager George R. Jarkesy by the SEC. The high court’s decision could have far-reaching effects on the SEC and other regulatory agencies, and it’s just one of several cases this term that could constrict federal regulators. The court’s conservative majority has already reined them in, including in last May’s decision sharply limiting their ability to police water pollution in wetlands. Last year, a divided panel of the New Orleans-based 5th U.S. Circuit Court of Appeals ruled in favor of Jarkesy and his Patriot28 investment adviser group on three separate issues. It found that the SEC’s case against him, resulting in a $300,000 civil fine and the repayment of $680,000 in allegedly ill-gotten gains, should have been heard in a federal court instead of before one of the SEC’s administrative law judges. The panel also said Congress unconstitutionally granted the SEC “unfettered authority” to decide whether the case should be tried in a court of law or handled within the executive branch agency. And it said laws shielding the commission’s administrative law judges from being fired by the president are unconstitutional. Judge Jennifer Walker Elrod wrote the appellate opinion, joined by Judge Andrew Oldham. Elrod was appointed by former President George W. Bush, and Oldham by former President Donald Trump.

Russian court fines Google for failing to store personal data on its users

A Moscow court on Tuesday fined Google for failing to store personal data on its Russian users, the latest in a series of fines on the U.S. tech giant amid tensions between the Kremlin and the West over the fighting in Ukraine. A magistrate at Moscow’s Tagansky district court fined Google 15 million rubles (about $164,200) after the company repeatedly refused to store personal data on Russian citizens inside the country. Google was previously fined over the same charges in August 2021 and June 2022. The company declined to comment. Google also was ordered to pay a 3 million ruble (about $32,800) fine in August for failing to delete allegedly false information about the conflict in Ukraine. Russia can do little to collect the fine, however, as Google’s Russia business was effectively shut down last year after Moscow sent troops into Ukraine. The company has said it filed for bankruptcy in Russia after its bank account was seized by the authorities, leaving it unable to pay staff and suppliers. Russian courts also have fined Apple and the Wikimedia Foundation, which hosts Wikipedia. Since sending troops into Ukraine in February 2022, Russian authorities have taken measures to stifle any criticism of the military campaign. Some critics have received severe punishments. Opposition figure Vladimir Kara-Murza was sentenced this year to 25 years in prison for treason stemming from speeches he made against Russia’s actions in Ukraine. Sasha Skochilenko, an artist and musician from St. Petersburg, is on trial on charges of spreading false information about the military for replacing supermarket price tags with protest slogans. Prosecutors have asked for an eight-year prison sentence for her.

Appeals courts temporarily lifts Donald Trump’s gag order

A federal appeals court temporarily lifted a gag order on Donald Trump in his 2020 election interference case in Washington on Friday — the latest twist in the legal fight over the restrictions on the former president’s speech. The U.S. Court of Appeals for the D.C. Circuit decision puts a hold on the limited gag order to give the judges time to consider Trump’s request for a longer pause on the restrictions while his appeals play out. The appeals court said the temporary pause “should not be construed in any way as a ruling on the merits” of Trump’s bid. The court set oral arguments for Nov. 20 before a panel of three judges — all appointees of Democratic presidents. The gag order, imposed by U.S. District Judge Tanya Chutkan, bars Trump from making public statements targeting prosecutors, court staff and potential witnesses in the case accusing him of conspiring to overturn the 2020 election he lost to President Joe Biden. It still allows the former president to assert his innocence and his claims that the case against him is politically motivated. Chutkan, who was appointed to the bench by former President Barack Obama reimposed the gag order on Sunday, after prosecutors pointed to Trump’s recent social media comments about his former chief of staff Mark Meadows. It’s the most serious restriction a court has put on the speech of the GOP presidential primary frontrunner and criminal defendant in four separate cases. Gag orders are not unheard of in high-profile cases, but courts have never had to wrestle before with whether they can curtail the speech of a presidential candidate. Special counsel Jack Smith’s team has said Trump’s inflammatory rhetoric about those involved in the case threatens to undermine public confidence in the judicial system and influence potential witnesses who could be called to testify.

Federal Judge rules California assault weapons ban unconstitutional

A federal judge who previously overturned California’s three-decade-old ban on assault weapons did it again on Thursday, ruling that the state’s attempts to prohibit sales of semiautomatic guns violates the constitutional right to bear arms. U.S. District Judge Roger Benitez of San Diego conceded that powerful weapons like AR-15 rifles are commonly used by criminals, but said the guns are importantly also owned by people who obey the law and feel they need firearms to protect themselves. “The State of California posits that its ‘assault weapon’ ban, the law challenged here, promotes an important public interest of disarming some mass shooters even though it makes criminals of law-abiding residents who insist on acquiring these firearms for self-defense,” Benitez wrote. “Nevertheless, more than that is required to uphold a ban.” The judge’s ruling is nearly identical to a 2021 decision in which he called California’s ban on assault weapons a “failed experiment.” Benitez has has repeatedly struck down multiple California firearms laws. Just last month, he ruled the state cannot ban gun owners from having detachable magazines that hold more than 10 rounds. Benitez’s latest decision would overturn multiple state statutes related to assault weapons. The judge gave the state 10 days to seek a stay on the ruling as part of an appeal to the U.S. 9th Circuit Court of Appeals. California Attorney General Rob Bonta said his office had already filed a notice of appeal. “Weapons of war have no place on California’s streets,” Bonta said in a statement Thursday. “This has been state law in California for decades, and we will continue to fight for our authority to keep our citizens safe from firearms that cause mass casualties. In the meantime, assault weapons remain unlawful for purchase, transfer, or possession in California.” John Dillon, an attorney for the plaintiffs who sued to overturn the law, cheered the judge’s ruling.

Biden’s second try at student loan cancellation moves forward with debate

President Joe Biden’s second attempt at student loan cancellation began moving forward Tuesday with a round of hearings to negotiate the details of a new plan. In a process known as negotiated rulemaking, 14 people chosen by the Biden administration are meeting for the first of three hearings on student loan relief. Their goal is to guide the Education Department toward a proposal after the Supreme Court rejected Biden’s first plan in June. The negotiators all come from outside the federal government and represent a range of viewpoints on student loans. The panel includes students and officials from a range of colleges, along with loan servicers, state officials and advocates including the NAACP. In opening remarks, Under Secretary of Education James Kvaal said the student debt crisis has threatened to undercut the promise of higher education. “Student loan debt in this country has grown so large that it siphons off the benefits of college for many students,” Kvaal said in prepared remarks. “Some loans made to young adults stretch into retirement with no hope of being repaid. These debt burdens are shared by families and communities.” Biden directed the Education Department to find another path to loan relief after the conservative court ruled that he couldn’t cancel loans using a 2003 law called the HEROES Act. The latest attempt will rest on a sweeping law known as the Higher Education Act, which gives the education secretary authority to waive student loans — although how far that power extends is the subject of legal debate. The department is going through the negotiated rulemaking process to change or add federal rules clarifying how the secretary can cancel debt.

Democratic Sen. Menendez says cash found in home was not bribe proceeds

Democratic U.S. Sen. Bob Menendez of New Jersey defiantly pushed back against federal corruption charges on Monday, saying nearly half a million dollars in cash authorities found in his home was from his personal savings, not from bribes, and was on hand for emergencies. Rejecting rising calls for him to resign, the influential chairman of the Senate Foreign Relations Committee said he believed he’d be cleared of charges that he took cash and gold in illegal exchange for helping Egypt and New Jersey business associates. “I recognize this will be the biggest fight yet, but as I have stated throughout this whole process, I firmly believe that when all the facts are presented, not only will I be exonerated, but I still will be New Jersey’s senior senator,” Menendez said at Hudson County Community College’s campus in Union City, where he grew up. He did not respond to questions and did not say whether he would seek reelection next year. Addressing allegations in the indictment unsealed Friday that authorities found cash stuffed in envelopes and clothing at his home, Menendez said that stemmed from his parents’ fear of confiscation of funds from their time in Cuba. “This may seem old fashioned, but these were monies drawn from my personal savings account based on the income that I have lawfully derived over those 30 years,” he said. Authorities recovered about 10 envelopes with tens of thousands of dollars in cash that had the fingerprints of one of the other defendants in the case on them, according to the indictment. Menendez also addressed his relationship with Egypt, which plays a central role in the indictment against him, suggesting he’s been tough on the country over its detention of Americans and other “human rights abuses.” “If you look at my actions related to Egypt during the period described in this indictment and throughout my whole career, my record is clear and consistent in holding Egypt accountable,” he said. Prosecutors say he met with Egyptian military and intelligence officials, passed along non-public information about employees at the U.S. Embassy in Cairo and ghostwrote a letter on behalf of Egypt asking his Senate colleagues to release a hold on $300 million worth of aid. He did not directly address those allegations Monday. The state’s Democratic leadership, including Gov. Phil Murphy, the state party chairmen and leaders of the Legislature, along with some of Menendez’s congressional colleagues, are calling on him to resign. In Washington, however, where his party holds a bare Senate majority, some of Menendez’s Democratic colleagues have stopped short of urging him to give up his seat, notably Majority Leader Chuck Schumer of New York, and Majority Whip Dick Durbin of Illinois.

A Supreme Court redistricting ruling gave hope to Black voters

The Supreme Court’s decision siding with Black voters in an Alabama redistricting case gave Democrats and voting rights activists a surprising opportunity before the 2024 elections. New congressional maps would have to include more districts in Alabama and potentially other states where Black voters would have a better chance of electing someone of their choice, a decision widely seen as benefiting Democrats. It’s been more than three months since the justice’s 5-4 ruling, and maps that could produce more districts represented by Black lawmakers still do not exist. Alabama Republicans are hoping to get a fresh hearing on the issue before the Supreme Court. Republican lawmakers in Louisiana never even bothered to draw a new map. Khadidah Stone, a plaintiff in the Alabama case, said the continuing opposition was “appalling” but “not surprising.” She noted that Alabama is where then-Gov. George Wallace blocked Black students from integrating the University of Alabama in 1963. “There is a long history there of disobeying court orders to deny Black people our rights,” she said. A similar dynamic is playing out in Florida, where Republicans are appealing a ruling favorable to Black voters to the Republican-majority state Supreme Court. Lawsuits over racially gerrymandered congressional maps in several other states, including Georgia, South Carolina and Texas, quickly followed the Supreme Court’s landmark Voting Rights Act decision in June. But the continued pushback from Republican legislatures in control of redistricting means there is great uncertainty about whether –- or how soon -– new maps offering equal representation for Black voters will be drawn.