Supreme Court rules SEC can recoup money in fraud cases
Legal Business News
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
-
New Mexico high court rules on privacy for banking records
Legal Business News 06/20/2020Prosecutors can obtain a person’s banking records using a warrantless grand jury subpoena without violating the individual’s right to privacy under New Mexico’s Constitution, the state Supreme Court has ruled.In a unanimous decision...
-
Arena turned court for first felony jury trial in months
Legal Business News 06/07/2020A 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 ...
-
Black Lives Matter rallies start in Australia amid court ban
Legal Business News 06/04/2020The first of several Black Lives Matter protests across Australia on Saturday got underway against a backdrop of possible clashes between demonstrators and police in Sydney, after a court sided with police that the gathering posed too much risk for s...
Is Now the Time to Really Call a Special Education Lawyer?
IDEA, FAPE, CHILD FIND and IEPs: The Individuals with Disabilities Education Act (IDEA) guarantees all children with disabilities to a free appropriate public education (FAPE). FAPE starts with a school’s responsibility to identify that a child has a disability (Child Find) and create an Individualized Education Program (IEP) to suit the needs of the child. Parents need to be persistent, dedicated and above all else aware of the many services and accommodations that their child is entitled to under the law. As early as this point within your child’s special education, many parents will often find themselves in the situation asking, “is now the time to really call a special education lawyer?” Here are a few things to consider when asking yourself that question.