WASHINGTON (AP) — The Supreme Court won't hear an appeal from a New Jersey plastics industry executive who was ordered to pay $49.5 million for lying about his ownership of a music retailer's stock.
The justices on Monday let stand a lower court ruling that ordered Alfred S. Teo to pay $17.4 million in disgorgement — repayment of unlawful gains — plus $14.6 million in prejudgment interest, and penalties of $17.4 million.
Teo served 2 ½ years in prison after pleading guilty in June 2006 to three counts of insider trading in stock he owned in the now-defunct Musicland Stores Corp.
Teo argued that he should not have had to disgorge profits that were unrelated to violations of securities laws.
Teo is chairman and CEO of Sigma Plastics Group Inc. of Lyndhurst, N.J.