That may have been the case up until 2002. Before that, money recovered did go to the treasury. Often investors do get nothing because a judgement for payment more often than not goes uncollected due to the company or individual involved being bankrupt or close to it. But with JF that is not the case. They struck a deal that was a win-win for both the SEC and JF.

https://www.investopedia.com/ask/answers/05/secfines.asp

Quote:

---

The Fair Funds for Investors provision was introduced in 2002, under Section 308(a) of the Sarbanes-Oxley Act (SOX). Fair funds for investors was put into place to benefit those investors who have lost money because of the illegal or unethical activities of individuals or companies that violate securities regulations.

---