Supreme Court Affirms Sec's Power to Recover Fraud Profits
WHO:
ABC News - The Supreme Court, Ongkaruck Sripetch, Justice Neil Gorsuch
AP News - Ongkaruck Sripetch, Securities and Exchange Commission (SEC)
WHAT:
Yahoo Finance - The Supreme Court ruled in a 9-0 decision in favor of the SEC regarding its authority to recover illegal profits through disgorgement.
Yahoo Finance - Under Trump, the SEC used disgorgement to obtain around $1.4 billion in fiscal 2025, while the SEC obtained $6.1 billion in disgorgement under President Biden in the previous year.
Yahoo Finance - The SEC sought disgorgement for illicit proceeds that Sripetch reaped through fraudulent means, including a pump-and-dump scheme.
ABC News - The Supreme Court upheld a broad reading of the SEC's authority to recoup ill-gotten gains from securities fraud.
AP News - The justices ruled unanimously against Ongkaruck Sripetch, who was sentenced to 21 months in prison after pleading guilty to selling unregistered securities.
AP News - Sripetch was ordered to repay more than $3 million, including interest, as part of a court order of disgorgement.
AP News - Sripetch participated in fraudulent schemes involving at least 20 penny stock companies, including "pump and dump" operations.
WHERE:
ABC News - Washington, D.C.
AP News - Los Angeles, California
WHEN:
ABC News - The Supreme Court ruling occurred on a Thursday.
AP News - The Supreme Court ruling was unanimous.
WHY:
ABC News - The case addressed whether the SEC needed to prove that individual investors lost money due to the fraudulent stocks.
AP News - The Supreme Court ruled that it was sufficient to show that Sripetch turned a profit from illegal transactions.
HOW:
Yahoo Finance - A California-based federal judge sided with the SEC's broader interpretation of its disgorgement power, which was upheld by the 9th U.S. Circuit Court of Appeals.
ABC News - The SEC may order disgorgement limited to the amount of illegally obtained profits in fraud cases under federal law and prior Supreme Court rulings.
(UPDATED June 5, 2026 04:20 UTC)
In a unanimous 9-0 decision, the Supreme Court has affirmed the SEC's authority to recover illegal profits through disgorgement, a significant ruling for the agency. Under Trump, the SEC secured approximately $1.4 billion in fiscal 2025 through this method, while during the previous year, it obtained $6.1 billion under President Biden. This ruling comes as the SEC sought disgorgement for illicit profits gained by Sripetch through fraudulent activities, including a pump-and-dump scheme, with a California-based federal judge supporting the SEC's broader interpretation of its disgorgement powers.
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(UPDATED June 4, 2026 19:44 UTC)
The Supreme Court has upheld a broad interpretation of the SEC's authority to recover ill-gotten gains from securities fraud, ruling unanimously against Ongkaruck Sripetch, who was sentenced to 21 months in prison for selling unregistered securities. As part of the court's order, Sripetch must repay over $3 million, including interest, after participating in fraudulent schemes involving at least 20 penny stock companies. The justices determined that it was enough for the SEC to demonstrate that Sripetch profited from his illegal transactions, without needing to prove that individual investors lost money.