The Delaware Supreme Court maintained venture capital, oil and gas company Swan Energy is not entitled to a jury trial after they were found to be running a long-term scheme deceiving investors.
Securities fraud was ongoing, according to the state’s Investor Protection Unit, and resulted in “administrative enforcement action” in 2020.
Swan Energy representatives responded within the administrative proceeding, arguing they had a right to a jury trial under the Delaware Constitution.
The state’s Supreme Court reaffirmed Monday the company does not have a right to a jury trial after Swan Energy filed a lawsuit disputing the enforcement.
“[The] respondents operated a long‑running scheme to induce investors—including those in Delaware—to purchase risky, unregistered oil, gas, and mining securities,” the Unit reported.
Delaware Attorney General Kathy Jennings stood by the courts, claiming their repeated findings show how fair and effective the investor protection process is.
“The Investor Protection Unit’s mission is to safeguard the investing public from fraud and protect the integrity of our markets,” Jennings said. “The Supreme Court’s ruling affirms that our processes honor both the law and the constitutional rights of all parties involved.”
That debate had been stuck in the court system for years, with Swan Energy’s legal defense arguing they were entitled to a jury trial.
The Supreme Court said the IPU has the power to carry out enforcement actions including fines, cease and desists, investor restitution, reporting requirements and account freezing.
