Tenth Circuit revives reverse-piercing theory as available in attempt to enforce SEC disgorgement order. The government sought a declaration that defendants are the alter egos of an individual subject to an SEC disgorgement judgment so it can pursue their assets. The district court ruled that the government’s reverse-piercing alter-ego theory is not available under Utah law. The 10th Circuit reversed and remanded, determining that Utah appellate court opinions suggest that Utah may apply reverse piercing given the facts of the case. The panel rejected the defendants’ argument that the claim is subject to the Fair Debt Collection Procedures Act, holding that it does not apply to disgorgement orders. (3/25/2016)Badger.

Second Circuit vacates US$10 million fines levied on securities fraud defendants. Two money managers were convicted, after a jury trial, of various offenses relating to securities fraud. The district court sentenced both of the defendants to prison, fined each one US$10 million, and imposed forfeiture and restitution against them for over $47 million. The Second Circuit affirmed the judgments but vacated the $10 million fines in the interest of fairness and remanded for reconsideration. The panel found that the record is unclear as to whether the defendants will be able to pay the $10 million criminal fines after satisfying their other criminal and civil repayment obligations. (3/23/2016) Tanaka.