SEC's $15B In Penalties Were Illegal, Skeptical Judge Hears
Law360, Boston (July 24, 2018, 9:00 PM EDT) -- A Massachusetts federal judge on Tuesday appeared skeptical of the notion that the U.S. Securities and Exchange Commission had overstepped its bounds in seeking almost $15 billion in disgorgements under a 2017 U.S. Supreme Court decision that a liquidation trustee says obliterated the commission's ability to pursue such penalties.
The suit is being led by the liquidation trustee for F-Squared Investment Management LLC's bankruptcy estate, which says the high court's unanimous ruling in Kokesh v. SEC, combined with past holdings that limit the SEC to collecting penalties specifically authorized by statute, means the commission has illegally collected disgorgement payouts for decades...
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