‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC’s FCPA Action Time Barred
The Commission’s FCPA complaint against two individuals at a hedge fund management firm involved with what the agency called a “sprawling scheme” to bribe various African public officials was dismissed as time barred. Specifically, the Court dismissed the SEC’s amended complaint against Michael Cohen and Vanja Baros, each of whom was employed by a subsidiary […]
Supreme Court skeptical about SEC’s powers of ‘disgorgement’ – The Washington Post
The Supreme Court indicated Tuesday that the federal government does not have the wide power it claims in pursuing the ill-gotten profits of fraudulent behavior. Justices across the board were at least skeptical of the Securities and Exchange Commission’s claim that it is not bound by a five-year statute of limitations when it seeks “disgorgement,” […]
Supreme Court next stop in Kokesh, SEC saga – The Santa Fe New Mexican
The case revolves around whether the SEC, the government’s civil enforcement arm for securities violations, can collect refunds from violators beyond a five-year limitation for penalties set by law. The agency argues its policy on recouping money lost from investors is not a penalty assessment, and an order for Kokesh to pay $35 million, going […]
Is There a Statute of Limitations on Disgorgement? – Lexology
How long does the Securities and Exchange Commission (SEC) have to bring a lawsuit asking for disgorgement of unlawful gains? The United States Supreme Court will decide that issue this term in Kokesh v. Securities and Exchange Commission. Under federal law, no “action, suit or proceeding for the enforcement of any civil fine, penalty, or […]
Eleventh Circuit ties SEC disgorgement to five-year statute of limitations – The FCPA Blog
Last month the United States Court of Appeals for the Eleventh Circuit held in SEC. v. Graham et al that the five-year statute of limitations in 28 USC §2462 applies to SEC claims for disgorgement or declaratory relief. Although Graham is not binding outside of the Eleventh Circuit, it represents a significant challenge to the […]
Why Did BHP Billiton Settle an FCPA Case Including 7+ Year-Old Conduct? | Cady Bar the Door
My question is: why is this case happening now? Does the statute of limitations mean nothing? Under 28 U.S.C. § 2462, the SEC has five years to bring cases including a “punitive remedies,” which includes civil money penalties such as the one in this case…. via Why Did BHP Billiton Settle an FCPA Case Including […]
Judge dismisses SEC’s fraud case against Cay Clubs timeshare operators – Orlando Sentinel
A Miami judge tossed the U.S. Securities and Exchange Commission’s case against principals of the Cay Clubs Resorts & Marinas last week, ruling that the five-year statute of limitations had expired and the SEC’s suit was filed too late. A criminal investigation of Cay Clubs is still underway. via Judge dismisses SEC’s fraud case against […]
Five-Year Anniversary of Madoff Revelations May Spur Additional Charges – Compliance Week
It is hard to believe that it has almost been five years since the revelation that Bernard Madoff’s wildly successful investment firm was actually a multibillion-dollar Ponzi scheme, but the five-year anniversary of Madoff’s December 2008 confession to authorities is fast approaching. Because securities fraud charges have a five-year statute of limitations, the next few months could […]
Don’t Believe The Hype On SEC Statute Of Limitations — FCPA Professor
The SEC is now pushing Congress to double its existing five-year time limit (applicable to Foreign Corrupt Practices Act offenses and many others) to ten years. Senator Jack Reed (D-RI), a high-ranking member of the Senate Banking Committee, reportedly intends to introduce legislation this fall. But the SEC already has several arrows in its quiver, such […]
Sen. Reed Working With SEC to Craft Legislation Doubling Statute of Limitations – Compliance Week
The SEC lost its recent Supreme Court battle over when the clock begins to tick on its five-year statute of limitations to bring fraud cases. It may still win the war on this issue, however, if legislation being developed by U.S. Senator Jack Reed of Rhode Island becomes law. Reuters reports that Sen. Reed is […]