Sales Agents Take SEC Life Settlements Row to Ninth Circuit (1)

Three former sales agents at a Los Angeles firm are taking a legal fight with the Securities and Exchange Commission to a federal appeals court, challenging an order requiring them to hand over thousands in allegedly ill-gotten gains.

The sales agents, who worked at Pacific West Capital Group, filed their opening brief with the US Court of Appeals for the Ninth Circuit on Thursday. They’re appealing a lower court ruling that found they illegally sold unregistered securities and must disgorge more than $676,300 combined.

The appeal raises two issues that have split circuit courts. The first is whether life settlements ...