Opinion ID: 3060711
Heading Depth: 3
Heading Rank: 2

Heading: Scope of Asset Freeze

Text: This court reviews an asset freeze for abuse of discretion. Commodity Futures Trading Comm’n v. Levy, 541 F.3d 1102, 1110 (11th Cir. 2008). Bishop 2 claims the district court abused its discretion by granting a preliminary injunction that froze all of his assets,1 other than an allowance for personal expenses, inconsistent with principles of equity. The FTCA’s grant of authority to issue an injunction carries the full range of equitable remedies, among which is the power to grant restitution.2 Wilshire, 531 F.3d at 1344 (quoting Fed. Trade Comm’n v. Gem Merch. Corp., 87 F.3d 466, 468-69 (11th Cir. 1996)). Restitution is an equitable remedy designed to cure unjust enrichment of the defendant. Id. at 1345 (citation omitted). Specifically, restitution and disgorgement deprive the defendant of his ill-gotten gains; these equitable remedies do not take into consideration the plaintiff’s losses. Id. (citation omitted). The “burden for showing the amount of assets subject to disgorgement (and, therefore available for freeze) is light: ‘a reasonable approximation of a defendant’s ill-gotten gains [is required] . . . Exactitude is not a requirement.’” Sec. & Exch. Comm’n v. ETS Payphones, Inc., 408 F.3d 727, 735 (11th Cir. 2005) (quoting Sec. & Exch. Comm’n v. Calvo, 378 F.3d 1211, 1217 (11th Cir. 2004)). 1 All of the defendant’s assets that existed on November 13, 2009 were frozen, including assets obtained prior to the activities alleged and assets held jointly with his wife, but excluding $9,500 per month for living expenses. 2 Here, the FTC seeks equitable relief, as evident from the FTC’s own complaint. (R. 1 at 13–15, ¶ 45 & Prayer for Relief). 3 The district court abused its discretion by imposing too broad of an asset freeze without making any reasonable approximation of Defendant-Appellant’s illgotten gains. Therefore, we remand this case to the district court to determine whether the asset freeze corresponds with a reasonable approximation of Bishop’s unjust enrichment, in accordance with equitable principles.