Armstrong Economics Blog/Rule of Law
Re-Posted Jun 11, 2017 by Martin Armstrong
Justice Sotomayor in the Supreme Court just held that the 5-year statute of limitations for penalties under 28 USC 2462 applies to SEC disgorgement claims. This is a monumental decision for in every case the SEC claims they has disgorge you back to birth. In KOKESH v. SECURITIES AND EXCHANGE COMMISSION decided June 5th.
Because disgorgement sought by the Securities and Exchange Commission operates as a penalty under 28 U.S.C. § 2462, in that it is imposed by the courts as a consequence for violating public laws and for punitive purposes, any claim for disgorgement in an SEC enforcement action must be commenced within five years of the date the claim accrued.
This is a major decision that would prevent many of the abuses that the SEC has carried out for decades.