Gag Order a Way for Feds to Avoid Criticism and Generate Revenue?

Gag orders imposed on defendants who have entered into civil settlements with the federal government prevent public scrutiny of the tactics, and ethics, of the federal agencies bringing the lawsuit.

Jaimie Cavanaugh, an Institute for Justice attorney working on the case, tells Reason that these SEC actions start with the agency threatening their targets with massive prosecutions and then settling for fines and allowing the person to forego an admission of wrongdoing.

That should raise concerns over whether these enforcement mechanisms are being used for revenue generation—a white-collar version of asset forfeiture, if you will.

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