The Securities and Exchange commission has levied billions of dollars in judgments in the past decade against those convicted of fraud, but the agency will also end up writing off billions it won't collect.

The Wall Street Journal reported Monday that in 2023 the SEC secured settlements representing $4.9 billion in financial sections, yet wrote off $1.9 billion in penalties levied in prior years. According to documents reviewed by the outlet the SEC has written off close to $10 billion in penalties over the past 10 years.

Citing its success at recovering funds for harmed investors, a spokesman for the agency said, “As a result of our continuous efforts, the commission has returned billions of dollars to investors in the past four years alone.” All told, the SEC collects nearly two-thirds of its financial judgements.

“If we are going to advertise the numbers that we are imposing, we ought to be transparent about the fact that does not mean that money is flowing to the government and to investors,” said Commissioner Hester Peirce, who was appointed by President-elect Donald Trump in 2018.

In the 2024 fiscal year, the SEC said it obtained orders for $8.2 billion in financial remedies, yet more than half will never be collected. The agency writes off penalties and other amounts owed that go unpaid for two years.

The Wall Street Journal cited the case of Paul Bilzerian, 74, who has been on the run for 31 years to avoid a $62 million judgement for securities fraud. To avoid paying the penalty, Bilzerian pleaded poverty and twice declared bankruptcy and eventually moved to the island nation of St. Kitts and Nevis to escape U.S. authorities.

Bilzerian’s fines now have reached $180 million, an amount the SEC is likely never going to see. In a 2014 interview, Bilzerian said he “would rather starve to death than earn a dollar to feed myself and pay the government a penny of it.”

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