Facts

Ongkaruck Sripetch ran penny-stock "pump-and-dump" schemes, artificially inflating prices before selling to unwitting investors. He pleaded guilty to criminal securities fraud and served 21 months in prison. In a parallel civil proceeding, a California district court ordered him to pay $2.251 million in disgorgement plus over $1 million in prejudgment interest—approximately $3.2 million total. The court did not require the SEC to prove that specific investors suffered financial (pecuniary) harm.

The Ninth Circuit affirmed, holding that proof of pecuniary harm is not required for disgorgement. This deepened a circuit split:

• Second Circuit (SEC v. Govil): Proof of pecuniary harm required
• First & Ninth Circuits: ...