The Supreme Court ruled unanimously that the Securities and Exchange Commission can recover illegal gains from wrongdoers regardless of whether the agency proves that investors suffered an actual financial loss. Justice Neil M. Gorsuch wrote the opinion, stating that a showing of pecuniary loss is not a prerequisite for an investor to qualify as a victim entitled to compensation.

This legal victory stems from a case involving Ongkaruck Sripetch, a Los Angeles man convicted in a pump-and-dump scheme. Sripetch contested the agency's attempt to recover $4.1 million he gained from the fraud. He argued the SEC could not require payment if investors did not lose money, but the court rejected this logic to prevent defendants from benefiting from misconduct.

By upholding the process of disgorgement, the ruling reinforces the watchdog's ability to strip assets from white-collar offenders. The decision is particularly notable given the Trump administration's general skepticism toward regulation, though the administration defended the agency's power in this instance. This ruling ensures the SEC can prioritize removing unjust gains over proving specific victim losses.

Justice Gorsuch concluded that courts must choose between allowing a defendant to keep illegal profits or stripping those gains. The court determined that removing the financial benefit of the crime is the correct legal path. This decision preserves the agency's capacity to recover billions of dollars from securities fraud schemes.