Attorney recommends SEC disbar attorneys over misconduct

December 3, 2023 at 8:11 pm

Edited by Anthony Patrick

News

Attorney recommends SEC disbar attorneys over misconduct

Australian lawyer Bill Morgan has suggested attorneys for the U.S. Securities and Exchange Commission (SEC) should be disbarred for alleged misconduct.

In a Dec. 2 post on X (formerly Twitter), Morgan underscored the significance of an attorney’s obligation to be truthful to the court, particularly in pressing legal proceedings.

I have not had an opportunity to look into this case but I can give a perspective from an Australian law context on a general level of the type of conduct that is being criticised by @s_alderoty and @JohnEDeaton1 and others.

An ex parte motion on an urgent basis seeking… https://t.co/jssqjUt3kj
— bill morgan (@Belisarius2020) December 3, 2023

He was speaking in response to criticisms from CryptoLaw founder John Deaton and Ripple (XRP) chief legal officer Stuart Alderoty regarding the SEC’s actions in several major crypto-related cases.

According to Morgan, what he calls “the duty of candor” compels lawyers to disclose all pertinent facts or potential defense arguments to the court, even if they contradict their cases.

In a previous post, Alderoty commented on the SEC’s behavior in various lawsuits it had brought against crypto companies, including Ripple and Coinbase.

He pointed out a pattern of concerning actions by the regulator in its interactions with the companies, drawing attention to instances where the court reproved the SEC for its inconsistency and disregard for established legal practices.

A troubling pattern emerges:
– Court finds the SEC demonstrated “hypocrisy” by making inconsistent arguments to the Court and not acting out of a “faithful allegiance to the law.” SEC v Ripple, 7/12/22
– Court agrees that the SEC defaulted on its duty to respond in good faith to…
— Stuart Alderoty (@s_alderoty) December 1, 2023

Furthermore, the Ripple attorney highlighted the SEC’s inadequate response to Coinbase’s crypto rulemaking request in June 2023, an action that led the court to label the regulator’s handling of similar cases as “arbitrary and capricious.”

In light of Alderoty’s allegations, Morgan emphasized the gravity of misleading the court in ex parte motions, labeling such behavior “egregious professional misconduct.” He indicated that those intentionally engaging in such deceitful action should face stern repercussions, including disbarment.