house Bill H.R. 4344
Should the SEC Have 14 Years (Rather than 5) to Recover Funds From Securities Law Violators & Return Them to Defrauded Investors?
Argument in favor
The Supreme Court’s 2017 ruling in Kokesh v. SEC severely hampered the SEC’s ability to force bad actors in the financial services industry to pay injured parties. To date, the Kokesh ruling has allowed criminals to keep $1 billion or more in ill-gotten gains; this is unconscionable, and needs to be fixed. Extending the statute of limitations for disgorgement is reasonable given that certain financial crimes, such as Ponzi-type schemes, are difficult to detect and legally intensive to investigate and prosecute (all of which increases the length of time needed to prosecute them).
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11/18/2019
I don't particularly care how it's done, but those who are caught defrauding others cannot reap the gains of their illegal acts by waiting for some 'statue of limitations' to time out. It seems to be a realistic rule change to allow the SEC to recover illegal obtained assets over a longer, more realistic time period. I say YAY on principle and YAY to enforcing this now, even if it may be addressed in the future, it is the right and moral thing to do- just so those who are promising changes actually remember their promises when the time comes. I also strongly support criminal charges and not just fines for institutions knowingly involved with supporting or not reporting fraudulent actions which they should have been aware of.
11/18/2019
5 years is to short a statute of limitations for this kind of crime.
11/18/2019
Although SEC seeks to Punish Perpetrators and not make VICTIMS WHOLE AGAIN, it would be Nice to see victims receive some of their money back for a change! Conviction of these crooks, while serving justice, doesn’t pay the bills retirement funds would have.
Argument opposed
The Supreme Court’s 2017 ruling in Kokesh vs. SEC was appropriate given the finding that the SEC has historically used disgorgement to punish securities fraud perpetrators, rather than to make defrauded investors whole — and punishment isn’t part of the SEC’s mission. Additionally, given that the Supreme Court will take up a case concerning disgorgement itself in Spring 2020, this bill could become a moot point in a matter of months; so it’d be better to wait until SEC v. Liu is decided next year before considering this bill.
11/18/2019
There is no constitutional authority for the federal government to regulate securities. This is a hold over from the unconstitutional New Deal and FDR’s unconstitutional alphabet government agencies during the Great Depression,
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11/19/2019
The SEC, while it prosecutes those who have stolen or defrauded investors, does NOTHING to recoup the losses the investors suffered. That's all left up to the courts. The ENRON case and so many others, NEVER recouped the losses suffered by the investors. Yes, the SEC has a useful purpose. But it's the courts that ultimately decide how the remaining assets (if any) left in the corporation or individual fraud perpetrator's accounts or property, gets divided and WHO gets the money. Often enough, it's the court appointed LAWYERS representing the victims that get the BULK of the cash. The remaining cash or assets are put in accounts controlled by the courts. The lawyers get PAID from those accounts BEFORE any of money or assets left are distributed to the victims. So in reality, what truly needs to be done is that the COURT, without even BOTHERING with lawyers, should just divvy up the remaining cash and order a sale of the assets at pubic auction. Then distribute the proceeds DIRECTLY to the victims. Once the SEC has gotten a conviction for investment fraud and the courts order the assets ceased for repayment to the victims.
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11/19/2019
Absolutely NOT. THOSE CROOKS DEFRAUDED THE PEOPLE FOR BILLIONS AND THEN GOT MONEY FROM THE GOVERNMENT THEY DO NOT DESERVE MORE TIME.
I don't particularly care how it's done, but those who are caught defrauding others cannot reap the gains of their illegal acts by waiting for some 'statue of limitations' to time out. It seems to be a realistic rule change to allow the SEC to recover illegal obtained assets over a longer, more realistic time period. I say YAY on principle and YAY to enforcing this now, even if it may be addressed in the future, it is the right and moral thing to do- just so those who are promising changes actually remember their promises when the time comes. I also strongly support criminal charges and not just fines for institutions knowingly involved with supporting or not reporting fraudulent actions which they should have been aware of.
There is no constitutional authority for the federal government to regulate securities. This is a hold over from the unconstitutional New Deal and FDR’s unconstitutional alphabet government agencies during the Great Depression,
5 years is to short a statute of limitations for this kind of crime.
Although SEC seeks to Punish Perpetrators and not make VICTIMS WHOLE AGAIN, it would be Nice to see victims receive some of their money back for a change! Conviction of these crooks, while serving justice, doesn’t pay the bills retirement funds would have.
Certainly. Why let Wall Street simply run out the clock? Why to they get bailed out for 12.8 TRILLION while the little investor gets cheated? Level the playing field!
The SEC, while it prosecutes those who have stolen or defrauded investors, does NOTHING to recoup the losses the investors suffered. That's all left up to the courts. The ENRON case and so many others, NEVER recouped the losses suffered by the investors. Yes, the SEC has a useful purpose. But it's the courts that ultimately decide how the remaining assets (if any) left in the corporation or individual fraud perpetrator's accounts or property, gets divided and WHO gets the money. Often enough, it's the court appointed LAWYERS representing the victims that get the BULK of the cash. The remaining cash or assets are put in accounts controlled by the courts. The lawyers get PAID from those accounts BEFORE any of money or assets left are distributed to the victims. So in reality, what truly needs to be done is that the COURT, without even BOTHERING with lawyers, should just divvy up the remaining cash and order a sale of the assets at pubic auction. Then distribute the proceeds DIRECTLY to the victims. Once the SEC has gotten a conviction for investment fraud and the courts order the assets ceased for repayment to the victims.
Absolutely! Some crimes should have NO statute of limitations and fraud is one of them. However any proposal of this nature is only valid If the SEC has some real teeth and isn’t afraid or otherwise directed no to bite too hard on the hand that feeds them. Up to now this hasn’t been the case. If all for extending or eliminating the statute of limitations on fraud and financial crimes and their collection, and I’m all for eliminating the ability to pay a fine without admitting guilt.
People who defraud other people have to make it right. The law now states that if they only have to pat 5 years of fraud and not anything earlier than this. We are talking about people’s retirement money. It should be longer than 14 years.
Accountability for egregious conduct is a public good and a government responsibility!
The SEC needs better funding and more comprehensive regulatory authority, while you're at it.
I'm in support to do what we need to do to rectify a wrong/injustice.
Absolutely NOT. THOSE CROOKS DEFRAUDED THE PEOPLE FOR BILLIONS AND THEN GOT MONEY FROM THE GOVERNMENT THEY DO NOT DESERVE MORE TIME.
Absolutely. There should be no statute of limitations on financiers ruining people's lives and living off their ill-gotten capital gains (pun intended). Theft is one thing, but people can have their entire lives ruined from these things. Hard to pull yourself up by your bootstraps when they've taken your laces, shoes, and everything else right out from under you.
Make it longer. They have to be forced into honesty some how.