Supreme Court rules SEC can recoup money in fraud cases

The Supreme Court on Monday preserved an important tool used by securities regulators to recoup ill-gotten gains in fraud cases. By an 8-1 vote, the justices ruled that the Securities and Exchange Commission can seek to recover the money through a process called disgorgement. Last year, the SEC obtained $3.2 billion in repayment of profits from people who have been found to violate securities law. “The Court holds today that a disgorgement award that does not exceed a wrongdoer’s net profits and is awarded for victims is equitable relief permissible" under federal law, Justice Sonia Sotomayor wrote for the court. Justice Clarence Thomas dissented. The Supreme Court in 2017 unanimously limited the SEC’s ability to go after profits where alleged fraud has been going on for years before authorities file charges. That case left open the question the high court answered Monday, that courts have the authority to order disgorgement of profits. The SEC has continued to aggressively pursue defendants’ profits in fraud cases.

Simple math suggests complex back story at Supreme Court

Organizers of a Michigan ballot drive to prohibit discrimination against gay, lesbian and transgender people said Monday they were evaluating whether to continue following a major victory in the U.S. Supreme Court. Fair and Equal Michigan launched the ballot effort in January after years of being unable to pass LGBT protections through the Republican-led state Legislature. The proposal would change a 1976 civil rights law that bans discrimination based on sexual orientation or gender identity in employment, housing and public accommodations. The Supreme Court ruled Monday that a key provision of a 1964 federal law that bars job discrimination due to sex encompasses bias against LGBT workers. The 6-3 decision does not directly affect discrimination in housing or public facilities. One of the lawsuits was brought by a Detroit-area transgender woman who was fired by a funeral home after she no longer wanted to be recognized as a man. Aimee Stephens died last month. Trevor Thomas, co-chairman of the ballot committee, called the ruling “great news” and said the group’s lawyer would advise “how it will impact people in the state of Michigan and our campaign moving forward.”

Brazil obeys court order to resume providing full virus data

A Brazilian Supreme Court justice ordered the government of President Jair Bolsonaro to resume publication of full COVID-19 data, including the cumulative death toll, following allegations the government was trying to hide the severity of the pandemic in Latin America’s biggest country. Justice Alexandre de Moraes said late Monday that the government is obliged to provide necessary information to Brazilian citizens, days after the Health Ministry scrubbed the cumulative death toll from the new coronavirus from its website. De Moraes said in his decision that the gravity of the pandemic, which has killed more than 38,400 Brazilians, requires transparency from the government as the country shapes policies to curb the virus. Brazil’s health ministry stopped publishing the number of total COVID-19 deaths and confirmed coronavirus cases on Friday. The restriction on the release of data, combined with its announcement after evening news programs had ended, generated widespread criticism. Gilmar Mendes, another Supreme Court justice, said Saturday that manipulation of data is a tactic of authoritarian regimes and that hiding the numbers wouldn’t exempt the government from responsibility for the pandemic’s heavy toll in Brazil. Facing intense criticism, a top Health Ministry official told reporters Monday night that the ministry would restore the cumulative death toll to its website, but with changes to the methodology for how daily deaths are tallied.

Wisconsin Supreme Court agrees to hear voter purge case

The Wisconsin Supreme Court on Monday agreed to hear a case seeking to purge about 129,000 voter registrations from the rolls ahead of the November presidential election after previously deadlocking on whether to get involved. Democrats oppose the voter purge, arguing it is intended to make it more difficult for their voters to cast ballots. Conservatives who brought the lawsuit argue that the integrity of the vote is at stake, saying that when records indicate voters may have moved, their registrations should be deactivated. The case is closely watched in battleground Wisconsin, a state President Donald Trump won by fewer than 23,000 votes in 2016. Winning Wisconsin is a key part of the strategy for both Trump and presumptive Democratic nominee Joe Biden. he voter purge case was brought on behalf of three voters by the Wisconsin Institute for Law and Liberty, a conservative law firm. It won in Ozaukee County, with a judge ordering in January that the purge take place immediately. The Supreme Court deadlocked then when asked to immediately take the case. In February, a state appeals court reversed the lower court’s ruling, stopped the purge and dismissed the case. That set up the latest request made in March for the Supreme Court to hear the case, which it agreed to do on Monday. It is likely to hear arguments this summer or early fall and could issue a ruling before the November election.

Supreme Court blocks House from Mueller grand jury material

The Supreme Court on Wednesday temporarily prevented the House of Representatives from obtaining secret grand jury testimony from special counsel Robert Mueller’s Russia investigation. The court’s unsigned order granted the Trump administration’s request to keep previously undisclosed details from the investigation of Russian interference in the 2016 election out of the hands of Democratic lawmakers, at least until early summer. The court will decide then whether to extend its hold and schedule the case for arguments in the fall. If it does, it’s likely the administration will be able to put off the release of any materials until after Election Day. Arguments themselves might not even take place before Americans decide whether to give President Donald Trump a second term. For justices eager to avoid a definitive ruling, the delay could mean never having to decide the case, if either Trump loses or Republicans regain control of the House next year. It’s hard to imagine the Biden administration would object to turning over the Mueller documents or House Republicans would continue to press for them. House Speaker Nancy Pelosi objected to the high court’s decision in a statement Wednesday evening. “The House’s long-standing right to obtain grand jury information pursuant to the House’s impeachment power has now been upheld by the lower courts twice,” Pelosi said. “These rulings are supported by decades of precedent and should be permitted to proceed.” The federal appeals court in Washington ruled in March that the documents should be turned over because the House Judiciary Committee’s need for the material in its investigation of Trump outweighed the Justice Department’s interests in keeping the testimony secret.

Lawyer: Security video in Arbery case may show water breaks

A young black man filmed by a security camera walking through a home under construction in December and in February may have stopped at the site for a drink of water, according to an attorney for the homeowner thrust into the investigation of the fatal shooting of Ahmaud Arbery. Arbery was killed Feb. 23 in a pursuit by a white father and son who armed themselves after the 25-year-old black man ran past their yard just outside the port city of Brunswick. Right before the chase, Arbery was recorded inside an open-framed home being built on the same street. Gregory McMichael, 64, and Travis McMichael, 34, have been jailed on murder charges since May 7. The elder McMichael told police he suspected Arbery was responsible for recent break-ins in the neighborhood. He also said Arbery attacked his son before he was shot. Arbery’s mother has said she believes her son was merely out jogging. On Friday, an attorney for the owner of the house under construction released three security camera videos taken Dec. 17, more than two months before the shooting. They show a black man in a T-shirt and shorts at the site. In the final clip, he walks a few steps toward the road, then starts running at a jogger's pace. “It now appears that this young man may have been coming onto the property for water,” J. Elizabeth Graddy, the attorney for homeowner Larry English, said in a statement. “There is a water source at the dock behind the house as well as a source near the front of the structure. Although these water sources do not appear within any of the cameras’ frames, the young man moves to and from their locations.”

Wisconsin court sets argument date for stay-at-home lawsuit

The Wisconsin Supreme Court announced Friday that it will hear oral arguments early next week in a lawsuit seeking to block Democratic Gov. Tony Evers’ stay-at-home order. The justices ruled 6-1 to accept the case and scheduled oral arguments for Tuesday morning via video conference. The arguments are expected to last at least 90 minutes. The ruling said the court will consider whether the order was really an administrative rule and whether Palm was within her rights to issue it unilaterally. Even if the order doesn’t qualify as a rule, the court said it will still weigh whether Palm exceeded her authority by “closing all ‘nonessential’ businesses, ordering all Wisconsin persons to stay home, and forbidding all “nonessential’ travel.’” Conservatives hold a 5-2 majority on the court. Liberal Justice Rebecca Dallet cast the lone dissenting vote. The ruling didn’t include any explanation from her. Evers initially issued the stay-at-home order in March. It was supposed to expire on April 24 but state Department of Health Services Secretary Andrea Palm extended it until May 26 at Evers’ direction. The order closed schools, shuttered nonessential businesses, limited the size of social gatherings and prohibits nonessential travel. The governor has said the order is designed to slow the virus’ spread, but Republicans have grown impatient with the prohibitions, saying they’re crushing the economy.