US SEC May Seize Illegal Funds

The U.S. Supreme Court issued an explanation under which the Securities and Exchange Commission (SEC) may seize illegally obtained income. In the document, the court clarifies that this is necessary in order to protect the interests of investors.

The precedent arose after the trial between the SEC and the married couple Charles Liu and Xin Wan. Liu and Wan raised funds for the construction of a cancer center. The couple managed to raise about $ 27 million, but the construction never began.

As a result, the funds were confiscated by the Securities and Exchange Commission, after which the couple appealed to the Supreme Court. Liu and Wan wanted to prove that the SEC does not have such authority. However, the judges sided with the Commission. In this regard, a precedent was created according to which the SEC can always withdraw funds that were received as a result of cheating investors.

Law & Trust Law Firm offers services for companies that operate in the United States. Our lawyers will tell you in which cases the Securities and Exchange Commission may confiscate funds, and if necessary, your rights will be defended in court.