In the wake of the stock market decline in early 2000, many major corpo-rations announced fraudulent accounting errors, sought bankruptcy pro-tection, or both. In rapid response, Congress enacted the Sarbanes-Oxley Act of 2002 in order to strengthen the Securities and Exchange Commission and enhance penalties for violations of securities laws.In its haste, Congress overlooked an important conflict between Sar-banes-Oxley and the Bankruptcy Code. The Fair Funds for Investors provision, contained in section 308(a) of Sarbanes-Oxley, allows the SEC to place a civil penalty obtained from violators of the federal securities laws into a disgorgement fund to be distributed to injured investors.