A federal appeals court upheld an order requiring a securities transfer agent to relinquish almost $115,000 in ill-gotten gains, handing a win to the SEC even as the US Supreme Court is set to review the regulator’s disgorgement powers.
The recouped money can be deposited with the US Treasury after the Securities and Exchange Commission was unable to find individual investors who were harmed, the US Court of Appeals for the Eleventh Circuit said in a 2-1 ruling Friday.
“The district court didn’t abuse its discretion when it ordered disgorgement,” the appellate panel’s per curiam opinion said.
Courts have grappled ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.