Friday, August 19, 2022 | Back issues
Courthouse News Service Courthouse News Service

Justices Take Up Man’s $55 Million Slap by SEC

The Supreme Court on Friday agreed to hear a businessman’s challenge of a $55.4 million disgorgement order and fine in a Securities and Exchange Commission action over the misappropriation of funds from four business development companies.

(CN) – The Supreme Court on Friday agreed to hear a businessman’s challenge of a $55.4 million disgorgement order and fine in a Securities and Exchange Commission action over the misappropriation of funds from four business development companies.

In August 2016, the 10th Circuit upheld a federal judge’s order that Charles Kokesh cough up $34.9 million in misappropriated funds, plus $18 million in interest and a $2.4 million civil penalty. Kokesh had argued the SEC’s case fell outside the federal statute of limitations for enforcement of the fine and forfeiture, and that he was improperly barred from presenting evidence that he didn’t know anything about the misappropriation.

The 10th Circuit found the disgorgement order was remedial and therefore the federal limitations period did not apply. The appeals court also noted that “evidence of reliance on professionals such as attorneys and accountants is significantly restricted in this circuit” and Kokesh failed to point to any specific potential testimony that would have helped him.

The U.S. Supreme Court agreed to take up Kokesh’s case on Friday without comment, per the court’s custom.

Read the Top 8

Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.

Loading
Loading...