The Securities and Exchange Commission faces challenges in collecting penalties, particularly from individuals involved in complex fraud schemes and offshore asset protection|CC BY 4.0

A former corporate raider, Paul Bilzerian, owes the Securities and Exchange Commission (SEC) $180 million after failing to pay a $62 million judgment for securities fraud.

For over 30 years, he avoided payment by declaring bankruptcy twice and moving to the island country St. Kitts and Nevis. Bilzerian has paid only $547,000 of the original 1993 judgment.

The SEC has spent millions trying to locate his assets in offshore trusts and family-owned companies.

His case highlights the broader challenges the SEC faces in collecting penalties, particularly from individuals involved in complex fraud schemes and offshore asset protection.

Over the past 10 years, the SEC has written off nearly $10 billion in penalties that haven’t been paid. While it boasts of imposing huge fines, collecting them has been difficult.