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A hedge fund manager who had previously been charged by the SEC with fraud has sued the commission in federal court, saying the internal courts that were used to charge him are unconstitutional and unfairly weighted towards the government, according to the
Wall Street Journal. Since 2010, when the passage of the Dodd-Frank Act allowed for it, the SEC has made generous use of its own internal court, which has generally produced decisions favorable to the commission: while the agency's win rate in federal courts was generally about 80 percent from September 2013 to September 2014, its win rate for internal courts was 100 percent, according to the Journal. The plaintiff argued that he couldn't get a fair hearing in front of the internal courts, as they are far more likely to favor the SEC. The commission, in response, argued that it is using power granted to it by Congress, and also noted that since the plaintiff had not brought up constitutional issues before, the federal appeals court should not consider this question.