Sripetch v. SEC

608 U. S. 555 (2026) · 6/04/26

A showing of pecuniary loss to investors is not required before the SEC may obtain a disgorgement award under 15 U. S. C. §78u(d)(5) or §78u(d)(7).

Ongkaruck Sripetch engaged in numerous fraudulent schemes involving at least 20 penny-stock companies. On discovering the schemes, the Securities and Exchange Commission (SEC) brought a civil enforcement action against Mr. Sripetch, charging him with six counts of securities fraud and one count of selling unregistered securities. Mr. Sripetch consented to the entry of judgment against him and agreed that the court could order disgorgement. When the SEC proceeded to seek over $4.1 million in disgorgement, however, Mr. Sripetch objected. He argued that the SEC's request violated Liu v. SEC, 591…

Held: A showing of pecuniary loss to investors is not required before the SEC may obtain a disgorgement award. Pp. 562–569. (a) The Court's analysis begins with two statutory provisions, 15 U. S. C. §§ 78u(d)(5) and 78u(d)(7). Section 78u(d)(5) allows the SEC to obtain “any equitable relief that may be appropriate or necessary for the benefit of investors.” Liu held this provision permits a court to order disgorgement so long as the remedy adheres to traditional equitable principles. 591 U. S., at 85. After Liu, Congress adopted § 78u(d)(7), which expressly allows the SEC to seek disgorgement…