Financial professional asks Pennsylvania Supreme Court to protect jury trial rights

Harrisburg, Pennsylvania; January 8, 2025: A Pennsylvania financial professional asked the Pennsylvania Supreme Court to consider whether the state Constitution guarantees a right to a jury trial when the government seeks to impose substantial civil penalties for conduct that has traditionally been decided by juries.

For centuries, claims involving fraud and similar wrongdoing were resolved in courts of law, where ordinary citizens serving on juries determined liability and punishment. In this case, however, the Pennsylvania Department of Banking and Securities pursued enforcement against Elliot Goldberg through an in-house administrative proceeding, rather than bringing its case in court.

The Department investigated the matter, prosecuted the case, alleged that he violated the Pennsylvania Securities Act of 1972, and imposed nearly $1 million in civil penalties without ever presenting the allegations to a jury. The penalties were punitive in nature and were not ordered to compensate investors or recover losses on their behalf.

“When the government seeks to impose life-altering financial penalties for alleged fraud, the Constitution protects the right to have those accusations decided by a jury,” said Oliver Dunford, a senior attorney at Pacific Legal Foundation. “This case is not about eliminating securities regulation. It’s about whether the government can bypass juries when imposing severe punishment for claims that have historically been tried in court.”

Mr. Goldberg’s case seeks to vindicate that right before the Pennsylvania Supreme Court and, ultimately, the U.S. Supreme Court.

The case is Goldberg et al. v. Pennsylvania Department of Banking and Securities.