Supreme Court Rules SEC Can Recoup Money in Fraud Cases
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:
Gomez Guilty of Murdering Los Hooligans Bass Player
Crime /
10 hours ago
Biden Says It Was a Mistake to Say He Wanted to Put Trump in a ‘Bull’s-Eye’
News /
11 hours ago
Tesla CEO Elon Musk Appears to Confirm Delay in Aug. 8 Robotaxi Unveil Event to Make Design Change
Business /
13 hours ago
Smittcamp Asks Court to Drop His Lawsuit Against Controversial NW Fresno Project
Politics /
14 hours ago
Measure P Arts Grants Spark Debate and a Meeting Tonight
Latest /
14 hours ago
Tedford Exits Fresno State Football. Tim Skipper Is the Next Bulldog Up.
Sports /
14 hours ago
Trump Receives Enough Delegate Votes to Officially be Republicans’ Nominee
News /
15 hours ago
Man Dies After Rescuing His 2 Children in Mississippi River
A Minnesota man who disappeared Friday while rescuing his two young children from the rain-swollen Mississippi River was found dead by autho...
News /
10 hours ago
Categories
Latest
Videos
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/15173402/A-photo-provided-by-Jesse-Pope-shows-Cody-Jay-Pope-right-with-him-in-2012.-The-authorities-found-the-body-of-Cody-Jay-Pope-a-41-year-old-Minnesota-man-who-had-disappeared-two-days-earlier-after-1024x538.jpg)
News /
10 hours ago
Man Dies After Rescuing His 2 Children in Mississippi River
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/15150557/AP24197467333843-1024x576.jpg)
Economy /
10 hours ago
Is Inflation Finally Corralled? Powell Says Federal Reserve Believes It’s Close
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/15171647/Los-Hooligans-court_1280X720-1024x576.jpg)
Crime /
10 hours ago
Gomez Guilty of Murdering Los Hooligans Bass Player
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/15172819/President-Joe-Biden-arrives-to-speak-to-members-of-the-media-in-Rehoboth-Beach-Del.-about-the-shooting-incident-at-Donald-Trumps-rally-in-Pa.-on-Saturday-July-13-2024.-President-Biden-said-o-1024x538.jpg)
News /
11 hours ago
Biden Says It Was a Mistake to Say He Wanted to Put Trump in a ‘Bull’s-Eye’
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/15144853/AP24197697589922_-1024x576.jpg)
Business /
13 hours ago
Tesla CEO Elon Musk Appears to Confirm Delay in Aug. 8 Robotaxi Unveil Event to Make Design Change
![](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/15120621/lawsuit-against-respiratory-care-facility_1280X720-1024x576.jpg)
Politics /
14 hours ago
Smittcamp Asks Court to Drop His Lawsuit Against Controversial NW Fresno Project
![The Wines of Fresno: Tony Kirk, Birdstone Winery](https://gvwire.s3.us-west-1.amazonaws.com/wp-content/uploads/2024/07/12152749/Tony-Kirk-Birdstone-Winery-016-1-1024x576.jpg)
Featured /
3 days ago