SEC v. Team Resources Inc., No. 18-10931 (5th Cir. 2019)Annotate this Case
While SEC's enforcement action against defendants was pending, the Supreme Court decided Kokesh v. SEC, 137 S. Ct. 1635, 1643 (2017), which held that disgorgement in SEC proceedings is a "penalty" under 28 U.S.C. 2462 and thus subject to a five-year statute of limitations.
The Fifth Circuit held that Kokesh did not overrule the court's established precedent recognizing district courts' authority to order disgorgement in SEC enforcement proceedings. Accordingly, the court affirmed the district court's disgorgement order. The court also held that the district court did not deprive defendants of discovery; the district court did not abuse its discretion by ruling on the SEC's remedies motion without holding an evidentiary hearing; and the district court did not abuse its discretion in determining the amount of disgorgement in this case.