Supreme Court Upholds Broad Reading of SEC Authority to Recoup Ill-Gotten Gains

The Supreme Court has upheld a broad reading of SEC authority. This ruling concerns the power to recoup ill-gotten gains. The decision applies specifically to fraud cases handled by the agency. It allows the SEC to continue seeking financial disgorgement from wrongdoers. The ruling supports the existing enforcement practices of the commission. Critics had argued for a more limited interpretation of the agency's power. The majority found that the current statutory language supports the broad view. This outcome ensures the SEC can recover profits obtained through securities fraud.