Monday, November 09, 2015

Bebo Denied Rehearing in ALJ Challenge

By Matthew Garza, J.D.

Laurie Bebo was denied rehearing of her federal case challenging the constitutionality of the SEC’s administrative enforcement regime in a brief order issued by the Seventh Circuit. The court said the judges on the original panel voted to deny the petition, and no other judges requested a vote on the petition for rehearing en banc (Bebo v. SEC, November 5, 2015).

Bebo, former CEO of Assisted Living Concepts, Inc., was fined $4.2 million by an SEC ALJ after being charged for various accounting shenanigans in December of 2014.

The federal district court in Milwaukee dismissed her constitutional challenge to the SEC proceeding, a decision the Seventh Circuit affirmed on appeal in August of this year. She is currently seeking SEC review of the ALJ’s initial decision. The SEC recently granted her a two-week filing extension, giving Bebo until November 13 to file her review petition.

The case is No. 15-1511.