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Supreme Court Restricts SEC’s Power to Recover Profits Obtained Through Fraud

Supreme Court Restricts SEC’s Power to Recover Profits Obtained Through Fraud
The Supreme Court is seen in Washington, early on June 15, 2020. J. Scott Applewhite/AP Photo
Matthew Vadum
Matthew Vadum
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The Supreme Court imposed limits on the Securities and Exchange Commission’s ability to compel defendants through the federal court system to disgorge profits earned through fraud.

In 2019, the SEC reportedly recovered a total of $3.2 billion in profits from people determined to have violated securities law. Disgorgement orders are different from the fines levied by the SEC.