Supreme Court Imposes a Five-Year Statute of Limitations on SEC Disgorgement Claims
Author: Richard Marshall.
Source: Volume 31, Number 04, Summer 2018 , pp.41-48(8)
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Abstract:
Rejecting the SEC’s position, the Supreme Court unanimously held that disgorgement sought by the Commission is a penalty subject to the federal five-year statute of limitations. The author discusses the background to the case and points to some open issues. He then considers the decision’s effect on tolling agreements, the speed of filing, scope of disgorgement, tax treatment, and indemnification/insurance claims. *This article is adapted, with updates by the authors, from The Review of Securities & Commodities Regulation, © RSCR Publications LLC, and is available for download for Journal of Taxation & Regulation of Financial Institutions subscribers only; no pay-per-article option is available.Keywords: Kokesh v. SEC, discovery rule, fraudulent concealment, restitution, tolling agreements, Johnson v. SEC, Gabelli v. SEC
Affiliations:
1: Katten Muchin Rosenman LLP.