Jett was sued by the SEC in 1996, and lost two separate rulings in 1998 and 2004. The SEC concluded that Jett booked millions of dollars of bogus trading profits on U.S. government bonds to conceal trading losses, and ordered him to return $8.2 million of bonuses, pay a $200,000 fine and be barred from the brokerage industry.

The SEC said Jett failed to file a timely appeal of its decision to the U.S. Court of Appeals, and sought to enforce its order against Jett in 2006, bringing an end to the long-running case. Jett, in turn, asserted that he had been denied due process under the law, claiming that he never received a copy of the SEC's 2004 ruling. The U.S. District Court in Manhattan rejected that in a decision on Friday and ordered Jett to comply with the terms of the 2004 SEC ruling.

Jett, now a money manager at Jett Capital Management, wasn't immediately available to comment. Kidder, now a defunct unit of General Electric Co., fired Jett in 1994 when the trading scandal came to light.