SEC Can't Collect Punitive Disgorgement, 1st Circ. Told

Law360 (March 4, 2019, 6:20 PM EST) -- The liquidation trustee for F-Squared Investment Management LLC's bankruptcy estate told the First Circuit on Friday that the U.S. Securities and Exchange Commission doesn't have the right to collect disgorgement when it is meant as a penalty rather than compensation for victims.

Trustee Craig Jalbert contested the lower court's finding that the SEC can collect any kind of disgorgement in administrative proceedings, reiterating his claim that the agency has been using disgorgement to collect excessive penalties for decades. Jalbert's initial complaint followed the U.S. Supreme Court's 2017 ruling in Kokesh, which determined that since the SEC collects disgorgement in an effort...

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Attached Documents



Case Information

Case Title

Subscribers Only

Case Number

Subscribers Only


Appellate - 1st Circuit

Nature of Suit

2899 Other Statutes

Date Filed

October 24, 2018

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