Sripetch v. SEC · ¶11

Among those limitations were these two. First, because equity seeks to “depriv[e] wrongdoers of their . . . profts from unlawful activity,” we held that any remedy must be limited to the defendant's net profts (not total revenues) derived from his securities-law violations. Id., at 79; see also id., at 85, 91–92. Second, because equity aims to deliver “wrongful gains” to “wronged victims”—a point reinforced by § 78u(d)(5)'s focus on “investors”—we concluded that any amounts the SEC secures must be “awarded for victims.” Id., at 79, 82–85, 89–90. Accordingly, we held that the SEC must “return a defendant's gains to wronged investors,” contrary to its “practice of depositing a defendant's gains with the Treasury.” Id., at 88.

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