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Here’s a real horror story of agency adjudication: Frank Black, a self-made securities broker-dealer owner in South Carolina, was swept into a Kafkaesque regulatory nightmare when the Financial Industry Regulatory Authority (FINRA) accused him of fraud and supervisory failures.
The agency accused him of failing to keep receipts and emails.
At a FINRA tribunal, the administrative law judge—a FINRA employee—found Frank guilty, slapped him with a quarter-million-dollar fine, and imposed a lifetime ban from the financial industry.
Frank, represented by Pacific Legal Foundation, is now suing FINRA.
FINRA’s dogged pursuit of Frank through its biased in-house tribunals is an affront to the Constitution. Only real federal courts should exercise judicial power.”
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