(United States Ninth Circuit) - In an issue of first impression involving the Securities and Exchange Commission's ability to disgorge ill-gotten funds from so-called 'relief defendants',the district court's final judgment, arising in connection with the SEC's enforcement action for federal securities law violations arising out of a fraudulent investment scheme, or is affirmed where: 1) the district court properly asserted jurisdiction over appellants as relief defendants to determine the legal and factual legitimacy of appellants' claim to the $5 million; and 2) the district court did not clearly err in finding that the $5 million transfer as a loan was a sham.
Source: findlaw.com