Chronicle Of Disgorgement’s Death Forestalled
November 3, 2021 | The Insider: White Collar Defense and Securities Enforcement
Not long ago, SEC disgorgement—court orders that a defendant found to have violated securities laws relinquish the proceeds from the violation—looked to be going the way of the dodo. For decades, the SEC aggressively used disgorgement as a remedy to securities law violations in addition to civil monetary penalties, injunctions, and various bans or suspensions. The figures were eye popping: in 2020, even amidst the Covid-19 pandemic, the SEC’s Enforcement Division reported that it obtained judgments and orders of disgorgement of nearly $4.7 billion, the highest on record.