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

    New Mexico high court rules on privacy for banking records

    Legal Business News 06/20/2020

    Prosecutors 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

    Arena turned court for first felony jury trial in months

    Legal Business News 06/07/2020

    A 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

    Black Lives Matter rallies start in Australia amid court ban

    Legal Business News 06/04/2020

    The 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...

Grounds for Divorce in Ohio - Sylkatis Law, LLC

A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party

Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party

However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.