SEC Roundup 80: Challenging the SEC’s Silent Sanctions and Lifelong Penalties

An SEC industry bar isn’t always a two-year timeout—it can feel more like a professional life sentence. In this episode, ICAN co-founder Nick Morgan and ICAN Senior Legal Director Mark Hiraide speak with Dr. Thomas J. Powell about his long road from settlement to silence in a story that highlights the lasting impact of SEC administrative bars.

What began as a 2021 settlement—including a two-year bar with eligibility for reinstatement—has evolved into a multi-year limbo, with no action or acknowledgment from the SEC for over 15 months after a formal petition for reinstatement.

The discussion explores:
• The nature and reach of SEC administrative bars, including penny stock and “bad boy” disqualifications
• Why even non-scienter (negligence-based) violations can carry career-ending consequences
• The constitutional concerns surrounding “neither admit nor deny” settlements
• The severe personal and professional collateral impacts of indefinite SEC bars

With the SEC only recently directing Enforcement to respond to Powell’s petition, this case underscores how “temporary” bars can become indefinite—and how reputational damage, professional bans, and even financial access restrictions extend far beyond the original order.

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ICAN is a nonprofit public interest litigation organization focused on defending investor rights and reducing regulatory barriers to capital access. We challenge overreach from regulators like the SEC, promote free and open markets, and stand up for small investors, entrepreneurs, and innovators who drive economic growth across the US and beyond.

We believe in a future where individuals, not bureaucracy, shape financial opportunity.

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