Sripetch v. SEC · ¶7
Instead, that remedy emerged like this. Beginning in the 1970s, the SEC persuaded lower courts to order those who had violated federal securities laws to disgorge their unlawfully earned gains “as an exercise of th[e] [courts'] `inherent equity power to grant relief ancillary to an injunction.' ” Id., at 458 (quoting SEC v. Texas Gulf Sulphur Co., 312 F. Supp. 77, 91 (SDNY 1970)). At first, some courts seemed to conceive of this remedy as a type of “restitution” to victims. SEC v. Texas Gulf Sulphur Co., 446 F. 2d 1301, 1307– 1308 (CA2 1971). But eventually, the SEC began routinely seeking and obtaining disgorgement awards that went “beyond compensati[ng]” victims by sending disgorged funds “to the United States Treasury.” Kokesh, 581 U. S., at 465, 467 (internal quotation marks omitted). Not only that, the sums disgorged often “exceed[ed] the profts” the defendant had “gained as a…Read in context ›
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