ABC News: Top Stories | Supreme Court upholds broad reading of SEC authority to recoup gains in fraud cases
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The U.S. Supreme Court unanimously upheld a broad interpretation of the Securities and Exchange Commission’s power to recover ill‑gotten profits from securities‑fraud perpetrators, ruling that the SEC does not need to prove that individual investors were financially harmed as long as the violator made a profit from illegal transactions. The decision stemmed from the case of Ongkaruck Sripetch, who was sentenced to 21 months in prison after pleading guilty to selling unregistered penny‑stock securities and was ordered to repay more than $3 million, including interest. Justice Neil Gorsuch wrote that anyone who profits from such wrongdoing can be considered a victim entitled to compensation, solidifying the SEC’s authority to pursue disgorgement in fraud cases.
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