Pinnacle Business Management (Prev SRCI)

[Dancing in the dark]

ya don't say ...

section 803 of the Sarbanes-Oxley Act assisted the Commission's collection efforts by making certain securities law judgments non-dischargeable in bankruptcy. Even with this change, however, the Commission still encounters cases where securities law violators can rely on state law homestead exemptions and other protections to shield their assets from collection. All states have statutes that exempt certain property from collection by creditors, including the Commission. Some defendants use these exemptions to shelter their assets from collection. For example, in certain states, defendants can shelter millions of dollars in their primary residences - the "homestead" exemption -- that might otherwise be available for collection by the Commission. Currently, when trying to collect disgorgement, the Commission's staff usually must engage in protracted litigation to avoid state law exemptions.