In an 8-to-1 decision, written by Justice Sonia Sotomayor, the court said the money must be for the benefit of investors and cannot exceed the actual profits that came from the wrongdoing.
Questions:
- Which justice voted against the majority saying that the law does not give authority to the SEC for the practice of disgorgement?
- How much does the SEC typically win each year in disgorgement orders from federal courts?
- How many cases are remaining for the Supreme Court this term?
- With respect to the court case, what was decided about the amount of the $27 million defrauded by Charles Liu and his wife Xin “Lisa” Wang?
Source:
Barnes, R. (2020). Supreme Court affirms SEC’s ability to recoup profits from fraud but places limits. The Washington Post, June 22 (Retrievable online at https://www.washingtonpost.com/politics/courts_law/supreme-court-affirms-secs-ability-to-recoup-profits-from-fraud-but-places-limits/2020/06/22/dfe8a9e6-b488-11ea-aca5-ebb63d27e1ff_story.html)