AG Shapiro Fights to Reclaim Millions for Ponzi Scheme Victims

Victims of Ponzi schemes and fake investment scams across Pennsylvania and the nation could finally see some of their stolen money returned, thanks to a hard push by Attorney General Josh Shapiro. He’s taking a stand in the Supreme Court fight over whether the Securities and Exchange Commission (SEC) can force financial crooks to disgorge their illicit profits—a critical tool in clawing back millions from fraudsters who’ve raided life savings and retirement accounts.

Shapiro has joined a bipartisan coalition of 24 attorneys general, led by Illinois AG Kwame Raoul, in filing an amicus brief in Liu v. Securities and Exchange Commission. The case centers on whether the SEC can seek court-ordered restitution—known legally as disgorgement—when prosecuting securities fraud. The brief argues that stripping fraudsters of their ill-gotten gains isn’t just fair, it’s essential to deter future scams and restore trust in financial markets.

In fiscal year 2019 alone, the SEC secured over $3.2 billion in disgorgement from fraudulent actors. Without this remedy, the brief warns, perpetrators of investment fraud could walk away with millions, emboldened by the knowledge that they’ll keep their plunder. Shapiro made it clear: “No matter if you are a small or large investor, there should be financial recourse if you’ve been scammed out of your retirement or college savings.”

Disgorgement isn’t punishment—it’s restitution. It’s the mechanism that forces con artists behind fake hedge funds, sham real estate deals, and pyramid schemes to return stolen cash to victims. In Pennsylvania, where seniors and working families have been targeted by slick-talking fraudsters, the outcome of this case could mean the difference between recovery and ruin for countless defrauded investors.

The coalition warns that blocking the SEC’s power to demand disgorgement would create a free pass for financial criminals. Without the threat of losing every dollar they stole, fraudsters have little reason to stop. Investor confidence would erode, and the integrity of U.S. securities markets would be undermined. “This isn’t about fines—it’s about getting money back into the hands of real people,” Shapiro emphasized.

Joining Shapiro and Raoul are the attorneys general of Alaska, Colorado, Connecticut, Delaware, Hawaii, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, Washington, and the District of Columbia. The battle now moves to the Supreme Court, where the justices will decide whether victims of financial fraud get a fighting chance to recover what was taken from them.

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