When the SEC Takes a Decade to Decide

In this episode of Unwritten Law, NCLA President and Chief Legal Officer Mark Chenoweth and Senior Litigation Counsel John Vecchione are joined by Senior Litigation Counsel Russ Ryan to discuss Lek Securities Corp. v. SEC, a case highlighting extreme delays in administrative adjudication.

The case involves a nearly decade-long delay by the SEC in resolving an appeal from a New York Stock Exchange disciplinary action—raising serious constitutional and statutory concerns. Russ explains how the delay implicates due process, the Administrative Procedure Act’s requirement that agencies act within a reasonable time, and even the SEC’s own internal deadlines.

The conversation explores why such delays matter: individuals and firms can be effectively punished long before a final decision is issued, facing reputational harm, business disruption, and prolonged uncertainty. Mark, John, and Russ also discuss potential remedies, including whether courts should set aside agency actions when delays become egregious.

The episode highlights broader structural concerns about administrative adjudication, including lack of accountability, limited access to judicial review, and incentives that allow agencies to delay decisions without consequence.