SEC Disgorgement ‘Critical’ to Stop Fraud, States Tell SCOTUS (2)

The SEC’s ability to recover ill-gotten gains from wrongdoers is “critical” to joint securities enforcement efforts, attorneys general from 23 states and the District of Columbia told the U.S. Supreme Court in a filing.

The bipartisan group of state law enforcement officials urged the court Tuesday to side with the Securities and Exchange Commission when it hears arguments March 3 over whether the agency can continue to pursue disgorgement as a civil remedy in federal court.

Although states have their own securities enforcement programs, “the magnitude and extent of securities fraud makes it impossible” for them “to combat all of ...