Supreme Court Affirms SEC’s Ability to Recoup Profits from Fraud But Places Limits

Washington Post, June 22, 2020–Robert Barnes
In an 8-to-1 decision written by Justice Sonia Sotomayor, the court said the money must be for the benefit of investors and cannot exceed the actual profits that came from the wrongdoing. Justice Clarence Thomas dissented, saying the law does not give authority to the SEC for the practice, which is called disgorgement.