The U.S. Supreme Court ruled 9-0 in favor of the Securities and Exchange Commission, affirming the agency's authority to seek disgorgement of illegal profits without having to prove investors suffered direct financial harm. The decision upheld a lower court ruling in a fraud case involving Ongkaruck Sripetch and preserves a key SEC enforcement tool used to recover billions of dollars annually.
- The Supreme Court unanimously upheld a lower court decision supporting broad SEC disgorgement authority.
- The case stemmed from a pump-and-dump scheme involving Ongkaruck Sripetch, who was ordered to repay more than $3 million in profits and interest.
- The Court rejected arguments that the SEC must prove victims suffered economic losses before seeking disgorgement.
- The SEC obtained approximately $1.4 billion through disgorgement in fiscal 2025, excluding certain large recoveries.
- The ruling preserves one of the agency's primary enforcement mechanisms alongside civil penalties and sanctions.
- The decision follows a separate 2024 Supreme Court ruling that limited the SEC's use of in-house administrative proceedings for fraud cases.
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Editor’s Note: This is a developing story. This article may be updated as more details become available.
