Supreme Court Rules SEC Can Recoup Money in Fraud Cases
By Associated Press
Published 4 years ago on
June 22, 2020
Share
WASHINGTON — The Supreme Court on Monday preserved an important tool used by securities regulators to recoup ill-gotten gains in fraud cases.
“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
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 TOPICS:
CA Restaurants Shouldn’t Be Shocked That ‘Junk Fees’ Ban Applies to Them
Opinion /
4 hours ago
Did California’s Massive COVID Homeless Shelter Program Work? A New Evaluation Probes the Results
Housing /
4 hours ago
Spurs’ Victor Wembanyama Is Rookie of the Year After a Record-Setting Season
Sports /
4 hours ago
Murray Tosses Heat Pack, Coach Screams at Officials as Frustrated Nuggets Lose Again
Sports /
5 hours ago
India Votes in Third Phase of National Elections; Modi Escalates His Rhetoric Against Muslims
World /
5 hours ago
New York Governor Regrets Saying Black Kids in The Bronx Don’t Know What a Computer Is
Politics /
6 hours ago
Boy Scouts of America Changing Name to More Inclusive Scouting America After Years of Woes
National /
6 hours ago
Israeli Forces Seize Rafah Crossing in Gaza, Threatening Aid and Putting Cease-Fire Talks on Edge
World /
6 hours ago
Testifying in Hush Money Trial, Porn Actor Stormy Daniels Describes First Meeting Trump
Politics /
6 hours ago
Watch: Israel’s Oversized Influence in American Elections
The American Israel Public Affairs Committee, with more than 100,000 members and a long roster of donors, is among the most powerful lobbyin...
Politics /
2 hours ago
Categories
Latest
Videos
Business /
3 hours ago
Own a Business? Learn How to Get a Piece of the $5.5 Billion Visa/Mastercard Settlement
Opinion /
4 hours ago
CA Restaurants Shouldn’t Be Shocked That ‘Junk Fees’ Ban Applies to Them
Housing /
4 hours ago
Did California’s Massive COVID Homeless Shelter Program Work? A New Evaluation Probes the Results
Sports /
4 hours ago
Spurs’ Victor Wembanyama Is Rookie of the Year After a Record-Setting Season
Sports /
5 hours ago
Murray Tosses Heat Pack, Coach Screams at Officials as Frustrated Nuggets Lose Again
World /
5 hours ago