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Congress recently overrode President Trump’s veto of the $740 billion 2021 National Defense Authorization Act (“NDAA”) and signed it into law. While the focus of the NDAA is not on the U.S. Securities and Exchange Commission (“SEC”), the NDAA does include a provision that gives the SEC, for the first time ever, statutory authority to […]
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 […]
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,” […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]