Discovery Rule Does Not Extend SEC SOL for Civil Penalties
Wed 27 Feb, 2013 | Client Alerts by Carl Schoeppl vCard
On February 27, 2013, the Supreme Court issued a unanimous opinion in Gabelli v. SEC, 568 U.S. 442 (2013), holding that the five-year statute of limitations for civil penalties sought by the SEC in its enforcement actions begins to run when the fraud occurs, not when it is discovered. In Gabelli, the Supreme Court rejected the SEC’s request to apply the discovery rule to claims for civil penalties under 28 U.S.C. § 2462, which establishes …