Sripetch v. SEC: Date Argued- 04/20/26

Background & FactsThe case arises from an SEC civil enforcement action against Ongkaruck Sripetch, who orchestrated a series of fraudulent "pump-and-dump" schemes involving penny-stock companies. Sripetch artificially inflated stock prices through manipulative trading and scalping campaigns before selling shares to unwitting investors at inflated prices .Sripetch admitted to securities law violations and was sentenced to 21 months in prison in a related criminal case . In the civil proceeding, a California district court ordered him to pay over $2.251 million in disgorgement plus more than $1 million in prejudgment interest—totaling approximately $3.2 million . Critically, the court did not require the SEC to demonstrate that specific investors suffered pecuniary (financial) harm from Sripetch's conduct .The Ninth Circuit affirmed, holding that a showing of pecuniary harm to investors is not a precondition for disgorgement under the relevant statutory provisions. This deepened an existing circuit split:Second Circuit (SEC v. Govil): Requires proof of pecuniary harm because disgorgement is equitable relief "for victims"First & Ninth Circuits: No such showing required; disgorgement is measured by the wrongdoer's gain, not victim lossThe Supreme Court granted certiorari on January 9, 2026, with the SEC's support—an unusual circumstance where both parties agreed review was needed .