Craig R. Jalbert, in His Capacity as Trustee of the F2 Liquidating Trust v. Securities and Exchange Commission

Whether a federal government agency commits a structural separation-of-powers violation of exercising a legislative function when, in addition to explicitly authorized penalties, it obtains other penalties under the label of “disgorgement,” which were not authorized by Congress and the imposition of which conflicts with the congressional statutory punitive and remedial scheme. Whether a waiver of judicial review by a respondent in connection with a settlement agreement with a federal government agency is valid and enforceable against that respondent in an action by the respondent claiming that the agency committed a structural separation-of-powers violation by extracting from the respondent a penalty labeled “disgorgement” that Congress did not authorize and which was imposed in addition to what the agency found to be the appropriate statutory penalty. Whether a federal government agency’s order imposing unauthorized penalties labeled “disgorgement” is void in relevant respects because the agency did not have the power to impose penalties without explicit congressional authorization.