Sripetch v. SEC · ¶63

Not even the SEC still treats disgorgement as an equitable remedy. To be sure, the SEC maintains that disgorgement is equitable in the hope of continuing to avoid jury trials. Tr. of Oral Arg. 59–62, 75–77. But, the SEC plainly uses disgorgement to collect forfeitures or penalties, even though doing so violates “the general principles of equity.” 2 Story § 1494; see Bangor Punta Operations, Inc. v. Bangor & Aro ostook R. Co., 417 U. S. 703, 717–718, n. 14 (1974). In 2024, the SEC obtained orders to disgorge $6.1 billion, while it returned only $345 million to victims. See Brief for Investor Choice Advocates Network as Amicus Curiae 20–21. It is difficult to see such a practice as anything other than a fines regime, an inherently legal process. See Jarkesy, 603 U. S., at 123.The Court appropriately emphasizes that, so long as the SEC continues to seek disgorgement in equity, this…

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