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Page Number: 21

18 

LIU v. SEC 

Opinion of the Court 

participation.”  Belknap, 161 U. S., at 25–26; see also Eliz-
abeth v. Pavement Co., 97 U. S. 126 (1878).

The common law did, however, permit liability for part-
ners engaged in concerted wrongdoing.  See, e.g., Ambler, 
20 Wall., at 559.  The  historic profits remedy thus allows 
some  flexibility  to  impose  collective  liability.   Given  the 
wide  spectrum  of  relationships  between  participants  and
beneficiaries  of  unlawful  schemes—from  equally  culpable 
codefendants  to  more  remote,  unrelated  tipper-tippee  ar-
rangements—the Court need not wade into all the circum-
stances where an equitable profits remedy might be puni-
tive when applied to multiple individuals. 

Here, petitioners were married.  754 Fed. Appx. 505; 262 
F. Supp. 3d, at 960–961.  The Government introduced evi-
dence  that  Liu  formed  business  entities  and  solicited  in-
vestments, which he misappropriated.  Id., at 961.  It also 
presented evidence that Wang held herself out as the pres-
ident, and a member of the management team, of an entity 
to which Liu directed misappropriated funds.  Id., at 964. 
Petitioners did not introduce evidence to suggest that one 
spouse was a mere passive recipient of profits.  Nor did they 
suggest  that  their  finances  were  not  commingled,  or  that 
one spouse did not enjoy the fruits of the scheme, or that 
other  circumstances  would  render  a  joint-and-several  dis-
gorgement order unjust.  Cf. SEC v. Hughes Capital Corp., 
124  F. 3d  449,  456  (CA3  1997)  (finding  that  codefendant 
spouse was liable for unlawful proceeds where they funded 
her “lavish lifestyle”).  We leave it to the Ninth Circuit on 
remand to determine whether the facts are such that peti-
tioners can, consistent with equitable principles, be found 
liable for profits as partners in wrongdoing or whether in-
dividual liability is required. 

C 
Courts may not enter disgorgement awards that exceed 
the  gains  “made  upon  any  business  or  investment,  when