Supreme Court rules to limit SEC power to recover profit from fraud

From the Washington Post

The Supreme Court on Monday unanimously limited the federal government’s power to recover the profits made from illegal behavior.

Justice Sonia Sotomayor wrote that the Securities and Exchange Commission must abide by a five-year statute of limitations in seeking “disgorgement” from those whose fraudulent actions resulted in illegal profits.

It is a favorite tool of the federal government; in recent years, the SEC took in nearly $3 billion in disgorgements, more than double what it received in penalties, according to court filings.

Read the full article.