Supreme Court Upholds SEC Disgorgement Power

The United States — Supreme Court of the United States unanimously ruled on June 4, 2026, in favor of the United States — United States Securities and Exchange Commission, upholding its broad authority to recover illegal profits through a financial remedy called disgorgement. The case stemmed from a challenge by defendant Ongkaruck Sripetch, who was ordered to repay over $3 million in ill-gotten gains from a pump-and-dump scheme and sentenced to 21 months in prison. Sripetch argued that the United States — United States Securities and Exchange Commission needed to prove victims suffered economic harm before seeking disgorgement. However, the United States — Supreme Court of the United States, in a 9-0 decision authored by Justice Neil Gorsuch, affirmed that such a showing of pecuniary loss is not required. This ruling strengthens the United States — United States Securities and Exchange Commission's enforcement powers, ensuring it can continue to combat financial fraud effectively. The Trump administration had defended the United States — United States Securities and Exchange Commission in the case, while under President Joe Biden, the agency had previously obtained $6.1 billion through disgorgement in fiscal 2024.