Respondent was convicted by a jury on one count of conspiracy to commit mail fraud and one count of securities fraud. Administrative proceedings were instituted based on that verdict. The proceedings were stayed pending entry of a judgment by the district court. Several months later, the court entered a judgment of acquittal and set aside the jury verdict. The Division of Enforcement agreed that the proceedings should be dismissed, but argued that the dismissal should be without prejudice. It argued that this was appropriate because the U.S. Attorney had moved that the district court reconsider its acquittal.
The Commission found only that there was no jurisdictional basis for the proceeding based on the judgment of acquittal. It did not address whether the dismissal should be with or without prejudice, noting that the Commission's rules do not make such a distinction.
At last a short decision, less than three full pages, although it managed to cram in seven footnotes.