The hedge fund of Justice Samuel Alito’s billionaire benefactor has been using a recent Alito-backed Supreme Court ruling to try to pressure federal regulators to back off new financial rules designed to fight fraud, according to documents reviewed by The Lever.
The hedge fund, Elliott Management, has been arguing that the rules are unconstitutional, and could ultimately try to bring a case before Alito to strike down the new regulations if they are enacted. The high court is currently considering a petition to hear a separate case involving the same firm.
ProPublica this week reported that Elliott Management founder, president, and co-CEO Paul Singer provided an undisclosed private jet flight to Alito, and has been a major donor to the Judicial Crisis Network, a dark money group that has funded campaigns to install conservative judges throughout the judiciary — including Alito. The justice has declined to recuse himself in past cases involving the hedge fund.
Nonetheless, the SEC’s proposed rules set up a potential court battle between the agency and Elliott, which could ultimately be decided in part by Singer’s Alaska fishing partner, Alito.
Elliott’s efforts to weaponize a recent Supreme Court case to block anti-fraud rules — and to potentially use the high court to kill them — spotlights how judges are in key positions to help billionaires who provide them with gifts and other largesse.