SEC Enforcement Division Director Andrew Ceresney said Thursday he has not heard any objections from investors about the SEC’s use of internal administrative law judges.

“[Administrative proceedings] are a fair forum,” Ceresney told a meeting of the SEC Investor Advisory Committee.

A number of financial professionals and academics have been vocal critics of the internal hearings, citing the fact that the SEC wins the vast majority of cases it brings in administrative proceedings.

The administrative judge system is being challenged in court as unconstitutional.

During the committee meeting, Ceresney said SEC Chair Mary Jo White’s “broken windows” initiative is misunderstood.

“It is not that every violation will be an enforcement action,” he said.

In broken windows, the SEC is going after repeat violations using a minimum of the Enforcement Division’s resources, he said, adding that the approach has brought about a significant drop in some infractions.

He told the committee there has been an increase in microcap fraud prosecutions.

“We have a very close relationship with the criminal authorities on these,” said Ceresney.

There has seen a proliferation of pyramid schemes spurred by social media and alleged success stories on YouTube, he added.

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