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SEC chided in Broidy case

LOS ANGELES (JTA) — A federal court judge said the Securities and Exchange Commission was “misusing the procedure” in its investigation of Elliott Broidy.

“What it comes down to is a minor scheduling dispute of a couple of weeks,” U.S. District Judge Stephen Wilson also said at a Sept. 30 hearing, according to a transcript.

The SEC said that Broidy, a venture capitalist and major Jewish philanthropist, repeatedly failed to respond to requests and subpoenas for bank and other records, and failed to appear for scheduled testimonies.

The agency is probing Broidy, 51, for “possible violations” of federal security laws, The Wall Street Journal reported. The investigation involves allegations that some investment firms made improper payments to secure lucrative business from public pension funds.

Broidy, a major donor and activist in the Los Angeles Jewish community and a leading investor in Israel, has not been charged with any wrongdoing.

Lawyers for both sides agreed to meet Oct. 22.
 

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