(a) Interest required. Prejudgment interest shall be due on any sum required to be paid pursuant to an order of disgorgement. The disgorgement order shall specify each violation that forms the basis for the disgorgement ordered; the date which, for purposes of calculating disgorgement, each such violation was deemed to have occurred; the amount to be disgorged for each such violation; and the total sum to be disgorged. Prejudgment interest shall be due from the first day of the month following each such violation through the last day of the month preceding the month in which payment of disgorgement is made. The order shall state the amount of prejudgment interest owed as of the date of the disgorgement order and that interest shall continue to accrue on all funds owed until they are paid.
(b) Rate of interest. Interest on the sum to be disgorged shall be computed at the underpayment rate of interest established under Section 6621(a)(2) of the Internal Revenue Code, 26 U.S.C. 6621(a)(2), and shall be compounded quarterly. The Commission or the hearing officer may, by order, specify a lower rate of prejudgment interest as to any funds which the respondent has placed in an escrow or otherwise guaranteed for payment of disgorgement upon a final determination of the respondent's liability. Escrow and other guarantee arrangements must be approved by the Commission or the hearing officer prior to entry of the disgorgement order.
Notes of Decisions
Sec. & Exch. Comm'n v. Teo, 746 F.3d 90 (3rd Cir. 2014).
· cites it 2× “17 CFR § 201.600 . We conclude that, as this is the rate that prevents unjust enrichment by approximating the interest rate for a loan (See Id.”
Sec. & Exch. Comm'n v. Durham, 370 F. Supp. 3d 954 (S.D. Ind. 2019).
· cites it 5× “] As such, the Court grants the Commission's requested disgorgement amount and the Court further agrees that the Commission is entitled to prejudgment interest on the disgorgement amount at the rate set forth in 17 C.F.R. § 201.600 . 3 As such, based on the record before the…”
SEC v. Platforms Wireless Intern. Corp., 617 F.3d 1072 (9th Cir. 2010).
“32,738, 32,788 (June 23, 1995) (codified at 17 C.F.R. § 201.600 (b)). We conclude that the SEC's reasoning on this issue is persuasive.”
Sec. & Exch. Comm'n v. Tavella, 77 F. Supp. 3d 353 (S.D.N.Y. 2015).
“See 17 C.F.R. § 201.600 (b) (Although "[ijnterest on the sum to be disgorged shall be computed at the [IRS] underpayment rate of interest,” '‘[t]he Commission or the hearing officer may, by order, specify a lower rate of prejudgment *362 interest as to any funds which the…”
Sec. & Exch. Comm'n v. Rust (S.D.N.Y. 2021).
· cites it 2× “Per the terms of the judgment, prejudgment interest shall be calculated from Sep- tember 30, 2011, based on the rate of interest used by the Internal Revenue Service for the underpayment of federal income tax as set forth under 17 C.F.R. § 201.600 (b) and 26 U.S.C. § 6621 (a)(2).”
Sec. & Exch. Comm'n v. Kelley (D.N.J. 2019).
“2014) (approving use of IRS underpayment rate in SEC prejudgment interest calculations as consistent with its own regulation, 17 C.F.R. § 201.600 ). The resulting amount of prejudgment interest is $417,868.”
Sec. & Exch. Comm'n v. Conaway, 695 F. Supp. 2d 534 (E.D. Mich. 2010).
“8, 2002) (“the district court generally calculates prejudgment interest by using the Internal Revenue Service rates for underpayment of taxes under 17 C.F.R. § 201.600 (b)”). Calculation of the defendant’s economic gain need not be exact, and determination of the appropriate…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.