Disgorgement is a legal remedy used by the Securities and Exchange Commission (SEC) in enforcement actions against companies or individuals who have violated securities laws. It essentially compels wrongdoers to relinquish all ill-gotten gains amassed through their misconduct. Whistleblowers play a critical role in exposing activities like accounting fraud, insider trading, or unregistered securities offerings, helping the SEC identify and investigate potential violations. Disgorgement aims to recoup the actual profits made through illegal activity. These recovered funds can then be distributed to investors harmed by the misconduct.