Securities and Exchange Commission v. Brian Lam, 2:22-cv-06831

The SEC brought a civil enforcement action against Brian Lam, alleging violations of federal securities laws, including antifraud provisions and registration requirements.
The Court had previously entered a bifurcated consent judgment, postponing decisions on remedies pending further briefing.
The SEC moved for monetary relief including disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.
The evidence indicated nearly $3.17 million in net profits from unlawful conduct, plus $650,252 in prejudgment interest, with Lam jointly liable with NineSquare and, for a portion, with relief defendant Yi Ping Lu.
The Court's final judgment enjoined Lam from future violations, imposed joint and several liability for monetary relief, and detailed the payment and enforcement mechanisms.
The Court exercised discretion to eliminate prejudgment interest against relief defendant Lu, finding equity weighed in her favor as an unknowing party.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Antifraud violations under federal securities laws	Lam engaged in fraudulent acts, statements, and omissions	Lam's conduct did not meet fraud threshold	Lam enjoined from further violations
Unregistered securities offerings	Lam unlawfully offered/sold unregistered securities	Sales fell under exemptions	Lam permanently enjoined
Disgorgement and monetary remedies	SEC entitled to full disgorgement, interest, penalty	Amounts should be reduced	Ordered $3.17M disgorgement, etc.
Relief defendant liability	Lu should be jointly liable for benefit received	Lu was unknowing, equity favors no interest	Lu jointly liable in part; no interest

U.S.S.E.C. v. Henke, 275 F. Supp. 2d 1075 (N.D. Cal. 2003) (court has equitable discretion regarding award of prejudgment interest in SEC enforcement proceedings)
Knapp v. Ernst & Whitney, 90 F.3d 1431 (9th Cir. 1996) (prejudgment interest awarded at discretion of trial court, guided by fairness considerations)