Supreme Court rules SEC can recoup money in fraud cases

U.S. Court Watch

Supreme Court rules SEC can recoup money in fraud cases

The Supreme Court on Monday preserved an important tool used by securities regulators to recoup ill-gotten gains in fraud cases.

By an 8-1 vote, the justices ruled that the Securities and Exchange Commission can seek to recover the money through a process called disgorgement. Last year, the SEC obtained $3.2 billion in repayment of profits from people who have been found to violate securities law.

“The Court holds today that a disgorgement award that does not exceed a wrongdoer’s net profits and is awarded for victims is equitable relief permissible" under federal law, Justice Sonia Sotomayor wrote for the court.

Justice Clarence Thomas dissented. The Supreme Court in 2017 unanimously limited the SEC’s ability to go after profits where alleged fraud has been going on for years before authorities file charges. That case left open the question the high court answered Monday, that courts have the authority to order disgorgement of profits. The SEC has continued to aggressively pursue defendants’ profits in fraud cases.

Related listings

  • Trump administration takes Keystone dispute to Supreme Court

    Trump administration takes Keystone dispute to Supreme Court

    U.S. Court Watch 06/15/2020

    The Trump administration has asked the U.S. Supreme Court to revive a permit program that would allow the disputed Keystone XL pipeline and other new oil and gas pipelines to cross waterways with little review.Earlier this year, a Montana judge suspe...

  • Arena turned court for first felony jury trial in months

    Arena turned court for first felony jury trial in months

    U.S. Court Watch 06/07/2020

    A city-owned arena in Batesville became a courtroom this week for the first felony criminal jury trial in Mississippi since the start of the coronavirus pandemic.More than 100 prospective jurors answered their summons to appear in court at the Civic ...

  • Wisconsin court sets argument date for stay-at-home lawsuit

    Wisconsin court sets argument date for stay-at-home lawsuit

    U.S. Court Watch 05/03/2020

    The Wisconsin Supreme Court announced Friday that it will hear oral arguments early next week in a lawsuit seeking to block Democratic Gov. Tony Evers’ stay-at-home order.The justices ruled 6-1 to accept the case and scheduled oral arguments fo...