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The U.S. Supreme Court has held that the Securities and Exchange Commission and other federal agencies must file cases pursuing civil penalties for fraudulent activity within five years of the day the fraud takes place, not within five years of the day the fraud is discovered.
So reports Thomson Reuters.
The Court issued the holding in the context of overturning the 2nd U.S. Circuit Court of Appeals’ decision refusing to dismiss a case against a mutual fund manager and his colleague for allegedly wrongful trades they made from 1999 to 2002.
Read the full article from Thomson Reuters here.
Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)
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