Additionally, the coalition argued that “disgorgement provides a direct financial benefit to the amici States and their residents by allowing the SEC to compensate investors who are victims of scams.
Furthermore, the coalition emphasized that courts have recognized that “disgorgement preserves the integrity of securities markets” because it deters misconduct and ensures that “crime does not pay.” It also “promotes investor confidence in the markets and maintains a fair and functioning market.”
Moreover, reducing the authority of the SEC to seek disgorgement will alter its longstanding collaborative regulatory and enforcement efforts with the amici States.
In a statement, AG Shapiro said, “No matter if you are a small or large investor, there should be financial recourse if you’ve been scammed out of your retirement or college savings. The SEC’s ability to seek restitution on behalf of defrauded investors is good practice, and it builds public trust in our markets.”