Opinion | Constitutional Thunder Out of the Fifth Circuit

Journal Editorial Report: The week's best and worst from Kim Strassel, Mary O'Grady and Dan Henninger. Images: Getty Images Composite: Mark KellyThat rumble you hear in the distance is federal courts moving to re-establish the proper understanding of the Constitution’s separation of powers.

The latest legal bombshell is a decision last week by the Fifth Circuit Court of Appeals against the Securities and Exchange Commission.The case involves hedge-fund founder George Jarkesy and an investment adviser, and it goes to the heart of whether the Constitution still protects individual liberty. In 2013 the SEC charged the pair with securities fraud for allegedly inflating the value of fund assets. The agency said the higher valuation allowed them to earn higher management fees.

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