Supreme Court Upholds SEC's Disgorgement Authority in Fraud Cases

The U.S. Supreme Court confirmed the SEC's power to demand disgorgement of illegal profits in fraud cases, with a unanimous decision. The case involved Ongkaruck Sripetch, who challenged the order to repay $3 million. Disgorgement yielded $1.4 billion in 2025 under Trump's leadership and $6.1 billion during Biden's term.

The U.S. Supreme Court ruled in favor of the Securities and Exchange Commission on Thursday, supporting the financial watchdog's authority to seek disgorgement of illegal profits. In a unanimous 9-0 decision, the justices maintained the SEC's broad powers in a case involving a defendant named Ongkaruck Sripetch.

Sripetch was ordered to repay over $3 million following allegations of financial fraud, including a scheme to artificially inflate stock prices. Despite challenges to the SEC's authority, the court ruled that the agency does not need to demonstrate victim economic harm when pursuing disgorgement.

Disgorgement has proven a lucrative tool for the SEC, garnering $1.4 billion in 2025 under Trump's administration and a notable $6.1 billion during Biden's presidency. The ruling supports the SEC's continued robust enforcement of securities laws, even as challenges to its methods continue.