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WASHINGTON, Jan 13 (Reuters) - The U.S. Supreme Court agreed on Friday to hear a case involving a New Mexico-based investment adviser that has the potential to limit the Securities and Exchange Commission's powers to recover illegal profits reaped by fraud or other wrongdoing.
The court will hear an appeal filed by investment adviser Charles Kokesh, who was sued by the SEC in 2009 for allegedly misappropriating money from several business-development company funds to pay for expenses such as salaries and bonuses. He is seeking to avoid paying $34.9 million in disgorgement, a legal term for recovering profits made from illegal acts.
Reporting by Sarah N. Lynch and Lawrence Hurley