Supreme Court upholds broad reading of SEC authority to recoup ill-gotten gains in fraud cases
- The Supreme Court upheld the Securities and Exchange Commission's broad authority to recover ill-gotten gains from securities fraud offenders.
- The Court unanimously ruled against Ongkaruck Sripetch, who was imprisoned for selling unregistered securities in a penny stock scheme.
- Sripetch challenged an order to repay over $3 million through disgorgement, including interest, but the court ruled against him.
- The Court decided that the SEC does not have to prove investors lost money, only that the offender profited from illegal transactions, and investors could be victims entitled to compensation.
17 Articles
17 Articles
Supreme Court Sides With SEC in Dispute About Recovering Illegal Profits
The U.S. Supreme Court on June 4 unanimously rejected a challenge to the U.S. Securities and Exchange Commission’s (SEC’s) broad authority to recover illegal profits through the disgorgement process. Disgorgement is a process in which a person or company is made to give up profits gained from illegal or unethical acts. The Supreme Court ruled that the SEC may recover ill-gotten gains even if the agency cannot show that investors experienced a fi…
(Seoul = Yonhap News) Reporter Joo Jong-guk = In U.S. stock manipulation fraud cases, even without proof of the victim's loss, authorities can recover profits resulting from the perpetrator's illegal activities...
Associated Press News
Supreme Court upholds broad reading of SEC authority to recoup ill-gotten gains in fraud cases
The Supreme Court has upheld a broad reading of the authority of the Securities and Exchange Commission to recoup ill-gotten gains from people who engage in securities fraud.
Crypto Briefing
BITRSSSupreme Court rules SEC can recover illegal gains without proof of investor loss
The ruling strengthens SEC's enforcement capabilities, potentially increasing financial recoveries and impacting regulatory strategies in emerging markets. The post Supreme Court rules SEC can recover illegal gains without proof of investor loss appeared first on Crypto Briefing.
Supreme Court Unanimously Backs SEC Power to Strip Illegal Gains Without Proving Investor Loss
The Supreme Court ruled 9-0 on June 4 that the Securities and Exchange Commission can force wrongdoers to surrender illegal profits even when it cannot identify specific investors who lost money — preserving one of the agency’s most powerful enforcement tools and resolving a split among federal appeals courts. Justice Neil Gorsuch wrote the majority opinion in Sripetch v. SEC. Justice Clarence Thomas filed a concurrence. The Trump administration…
Supreme Court affirms SEC’s authority to recover profits in securities fraud cases
The Supreme Court unanimously upheld the Securities and Exchange Commission’s (SEC) broad authority to recover ill-gotten gains (“disgorgement”) from those who commit securities fraud. Driving the news: The case involved Ongkaruck Sripetch, a Los Angeles resident sentenced to 21 months in prison after pleading guilty to selling unregistered securities in a scheme involving risky penny stocks. Sripetch challenged a court order requiring him to r…
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