Question

4. In your own words, describe disgorgement. What are your opinions on using disgorgement as a sanction?

5. The Internal Revenue Service often chooses high profile people to prosecute. Do you believe that Wesley Snipes was a villain or a victim? Was his punishment Appropriate? Why?

6. What company policies, practices, and techniques would you recommend that individuals and accounting firms adopt to reduce or avoid civil liabilities and criminal charges?

Answer 1

4. Disgorgement is a remedial civil action which involves repayment of ill-gotten gains. Such repayments are usually imposed on the wrong doers by courts of law. Many a time’s business establishments receive money that may be obtained either illegally or unethically or both. In such cases courts may order the business establishment to pay back the illegally or unethically obtained fund to the concerned party from whom the fund was obtained. The repayment will also include deemed interest on the original amount of the fund.

Disgorgements can be used as a sanction effectively to ensure that all ill gotten money and funds are returned to their owner and wrong doers are not in a position of advantage. I am in favor of using disgorgements as a sanction as legal compulsion will help in preventing unjust enrichment.