Full docket text for document 359:

DOCKET TEXT ORDER - Pursuant to the Memorandum Decision and Order 338 the Parties submitted briefs on the issue of disgorgement 351 352.

The Parties' briefing and supporting documentation have been carefully reviewed. This Order finds:

-A party is not unjustly enriched if the gains he acquired flow from any legitimate business activity.

-A claimant bears the burden of showing the disgorgement amount is a reasonable approximation of defendants unjust enrichment.

-Unjust enrichment may be shown by gross receipts or increase in net assets.

-A defendant is free to introduce evidence showing that unjust enrichment is something less than the amount put in evidence by plaintiff. Defendant has the burden of proving entitlement to a credit or deduction for business expenses, which may include refunds to customers.

-However, defendant is not entitled to a credit for costs or expenses incurred in an attempt to defraud the claimant.

-Tax credits or depreciation deductions by defendants' customers might be a measure of disgorgement, but are not a required measure of disgorgement.

-Individuals may be held personally liable for an entity's debt, if the individuals' unjust enrichment was directly derived from using the entity as a conduit for fraud.

-Defendants may, when appropriate by transmission of funds from one to another, be jointly and severally liable for disgorgement.

Docket text only. No attached document.

Signed by Judge David Nuffer on 03/29/2018.

(ms) (Entered: 03/29/2018)