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.