03.15.19
Senate Proposal Would Give SEC More Tools to Seek Restitution for Investors
by: Hazel Bradford
The SEC would have more tools and time to seek restitution for investors harmed by securities fraud under bipartisan legislation introduced Thursday by members of the Senate Banking Committee. The bill comes in response to a June 2017 Supreme Court ruling that put new limits on a common SEC strategy to recoup illegal profits from those found to have violated federal laws. The SEC's 2018 enforcement report projected that the ruling may cause the SEC to forego $900 million in disgorgement payments. The proposed measure would give the SEC 10 years to pursue fraud claims, including five years for disgorgement. It would also allow it to file claims of restitution to increase the amount of compensation available for harmed investors. Related coverage: Wall Street Journal
Read the full article on Pensions & Investments