SEC v. First Jersey Securities, Inc.
United States Court of Appeals for the Second Circuit
101 F.3d 1450 (1996)
Relevant factsFree
First Jersey Securities and its sole owner Brennan (defendants) misled investors into buying stock at prices far above market value, and after the SEC (plaintiff) sued and won, the district court ordered First Jersey to disgorge its fraudulent profits with interest, making Brennan personally liable for any shortfall as sole owner; First Jersey appealed the disgorgement portion of the judgment.
IssueFree
Whether courts have broad discretion in deciding whether to order disgorgement of a corporation's profits, and the amount to disgorge, as a penalty for federal securities-law violations.