The Seventh Circuit has held that federal district courts do not have subject matter jurisdiction over challenges to ongoing SEC administrative enforcement proceedings where the challenger is already a party to those proceedings.  Instead, a party to a pending administrative proceeding must defend against the proceeding and then seek review from the SEC Commissioners and, eventually, the federal appellate courts.  The decision in Bebo v. SEC is at odds with several recent district court decisions holding that the statutory scheme for review of SEC administrative proceedings does not preclude court challenges to the constitutionality of the SEC’s enabling legislation or to the structural authority of the SEC.  Proskauer provides additional insight on the Seventh Circuit’s decision in a client alert located here.