Ongkaruck Sripetch, Petitioner v. Securities and Exchange Commission

This case asked whether the Securities and Exchange Commission can seek disgorgement (repayment of ill-gotten gains) without first proving investors lost money. The Supreme Court said a showing of pecuniary loss to investors is not required before the SEC may obtain disgorgement under its civil-enforcement power.

The decision makes it easier for the SEC to pursue money remedies in fraud cases, including schemes where investor losses are hard to measure. That affects defendants in SEC enforcement actions and investors seeking recovery from market-manipulation cases.

Lower courts will apply this rule in SEC enforcement cases under 15 U.S.C. §§ 78u(d)(5) and (d)(7). The SEC can keep seeking disgorgement without making investor pecuniary loss a threshold showing, while defendants will likely focus on the amount and limits of that remedy.

The dispute was whether the SEC must show investors lost money before seeking disgorgement in court. The Supreme Court said that extra showing is not required.

The SEC and people or firms it sues in civil securities cases are most affected. The agency can pursue repayment even when investor losses are difficult to prove precisely.

Lower courts must follow the new rule in future SEC cases under these statutes. Parties will now argue more about the size and scope of disgorgement, not that threshold issue.