(Bloomberg) -- 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”
-- 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 SEC won disgorgement orders totaling $2.5 billion in fiscal 2018, compared with $1.4 billion in other types of penalties. The 2002 Sarbanes-Oxley Act says judges hearing SEC enforcement actions can award “any equitable relief” they deem appropriate for the protection of investors.But Liu and Wang’s attorneys say the SEC has sought so much money through disgorgement that it’s become a punitive measure, much like a penalty.
Liu and Wang point to a 2017 Supreme Court decision that said disgorgement is covered by a five-year statute of limitations that applies to penalties. That ruling explicitly declined to say whether the SEC has power to seek disgorgement in the first place.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Supreme Court Weighs SEC Clawback ChallengeThe Supreme Court said it would consider a challenge to a key SEC enforcement tool: the ability to claw back ill-gotten gains from those who commit financial fraud
Leer más »
U.S. Supreme Court to review SEC's power to recover ill-gotten gainsThe U.S. Supreme Court on Friday agreed to hear a challenge to the ability of th...
Leer más »
Supreme Court will consider stripping SEC of power to seize illegal profitsThe U.S. Supreme Court agreed to consider stripping the Securities and Exchange Commission of its power to recoup illegal profits from wrongdoers.
Leer más »
Bencic points finger at Shenzhen court as withdrawals mountSwitzerland's Belinda Bencic questioned the quality of the court used at th...
Leer más »
Disabled Stuntwoman Leslie Hoffman Wins Another Court Battle In Long-Running Feud With SAG Pension PlanDisabled stuntwoman Leslie Hoffman has won another legal battle in her years-long fight with the Screen Actors Guild Pension Plan. A federal judge ruled that “the Plan abused its discretion” by den…
Leer más »
Bad day in court for Giuliani associate Igor FrumanRachel Maddow reports on the difficult day Rudy Giuliani associate Igor Fruman had in court today as his lawyer tried to ease some of the restrictions of his bail with a less-than-convincing argument that Fruman's one-way plane ticket was not an indication that he was trying to flee the United States.
Leer más »