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Supreme Court Clips Wings of SEC Enforcement

The agency's disgorgement orders are subject to a five-year statute of limitations, court rules.

The U.S. Supreme Court on Monday reined in a Securities and Exchange Commission enforcement tool that the commission wanted to use to exact billions in fines for long-ago fraudulent acts.

unanimous court ruled in Kokesh v. United States that the commission’s “disgorgement” orders imposed on fraudsters amounted to a penalty and as such, must meet a five-year statute of limitations.

Originally published on National Law Journal. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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