Supreme Court Will Consider Stripping SEC of Disgorgement Powers
- Case centers on one of commission’s most potent legal weapons
- SEC won $2.5 billion in disgorgement orders in fiscal 2018
The U.S. Supreme Court stands in Washington, D.C., U.S.
Photographer: Anna Moneymaker/BloombergThis article is for subscribers only.
The U.S. Supreme Court agreed to consider stripping the Securities and Exchange Commission of its power to recoup illegal profits from wrongdoers, taking up a challenge to one of the agency’s most potent legal weapons.
The appeal by Charles Liu and Xin Wang contends that “disgorgement” isn’t one of the remedies Congress has authorized the SEC to seek against people who violate the nation’s securities fraud laws. The California couple is fighting a $27 million disgorgement order.