On November 29th, the Seventh Circuit addressed whether the district court erred in approving a SEC-appointed receiver's use of the "rising tide" method for calculating the distribution of a Ponzi scheme's receivership assets. In a paradigm application of the Chicago school's economic theory, the Judge Posner-authored opinion discussed the overall utility of the rising tide method versus the net loss method and concluded that in the instant action, the use of the rising tide method was not an abuse of discretion. SEC v. Huber.