On Friday, in a first-of-its-kind ruling, U.S. District Judge Shira Scheindlin of Manhattan federal court granted the SEC the right to seek disgorgement from the estate of Charles Wyly, Jr, who was facing SEC insider-trading allegations when he died in a car crash in August. The judge concluded that the SEC’s disgorgement case was remedial, not punitive, so its claim survived Wyly’s death. She also found that it doesn’t make sense to permit Wyly’s estate to hold onto his allegedly ill-gotten gains simply because he’s no longer alive.
via Zombie litigation! SEC can seek disgorgement from dead defendant.–Thomson Reuters News & Insight
