‘Enforcement 40′ for 2017
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Remedies in SEC Enforcement Actions: The End of Disgorgement? – SEC ACTIONS
The Supreme Court granted certiorari in a case that may well have a very significant impact on the remedies available in Commission enforcement actions: Liu v. Securities and Exchange Commission, No. 18-1501 (Cert. granted Nov. 1, 2019). The question the Court agreed to resolve is: “Whether the Securities and Exchange Commission may seek and obtain […]
Supreme Court will consider stripping SEC of power to seize illegal profits – Los Angeles Times
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 […]
The Catch with Kokesh: Insurers Refusing to Cover Disgorgement to SEC – King & Spalding
While the J.P. Morgan decision will not be the final word on the insurability of disgorgement, the policy language at issue is commonplace and insurers certainly will cite the case to support denials of coverage. Additionally, courts in a number of states have held that fines and penalties are not insurable as a matter of […]
The SEC’s Greed Is Coming Back to Bite It – Bloomberg
Anyway some lawyers read the Kokesh opinion in that particular way and brought this class-action lawsuit against the SEC a couple of weeks ago. Delightfully the class of victims/plaintiffs in the lawsuit is securities fraudsters: Specifically, it’s “all persons or entities from whom the SEC has collected, during the period from October 26, 2011 to the present, purported ‘disgorgement,’” […]
In the Wake of Kokesh v. SEC: Whither Disgorgement in FCPA Cases – Lexology
On June 5, 2017, the United States Supreme Court unanimously held in Kokesh v. Securities and Exchange Commission [1] that disgorgement in SEC enforcement actions operates as a penalty, and as a result is subject to the federal five-year statute of limitations under 28 U.S.C. §2462. The Kokesh decision resolved a split between the US […]
The SEC Reaching Back Far In The Past With Its Powers of Disgorgement | Compliance Building
We have become used to the Securities and Exchange Commission extracting disgorgement of ill-gotten gains from those violating the securities laws. However, the enabling laws do not explicitly grant the SEC the right to disgorgement. We seem to accept that power, but how far back can the SEC go to grab cash from defendants? In […]
Eleventh Circuit ties SEC disgorgement to five-year statute of limitations – The FCPA Blog
Last month the United States Court of Appeals for the Eleventh Circuit held in SEC. v. Graham et al that the five-year statute of limitations in 28 USC §2462 applies to SEC claims for disgorgement or declaratory relief. Although Graham is not binding outside of the Eleventh Circuit, it represents a significant challenge to the […]
US SEC to decide if investors share in $600m SAC settlement
If the SEC rules in their favor, the investors could seek a portion of the $602 million the SEC collected in a settlement from a division of SAC Capital Advisers after former portfolio manager Mathew Martoma was caught trading on secret tips. It would be the SEC’s largest payout ever to insider trading victims. The […]
Second Circuit Gives SEC Powerful Weapon to Help Deter Insider Trading – Compliance Week
Yesterday, the U.S. Court of Appeals for the Second Circuit issued an interesting ruling in the case of SEC v. Contorinis that provides the SEC with an additional weapon in its effort to deter insider trading. via Second Circuit Gives SEC Powerful Weapon to Help Deter Insider Trading – Compliance Week
SEC seeks $1.1 m-plus from ex-Goldman VP Tourre — Reuters
The U.S. Securities and Exchange Commission asked a federal judge to order former Goldman Sachs Group Inc vice president Fabrice Tourre to pay more than $1.1 million for his role in a failed 2007 mortgage deal, according to a court document filed Monday in Manhattan federal court. via SEC seeks $1.1 m-plus from ex-Goldman VP […]