Under the National defense Authorizations Act enacted in January 2021, the SEC’S statute of limitations for disgorgement was doubled to 10 years to seek equitable relief in all cases. Disgorgement means the SEC could recover ill-gotten gains from defendants, no matter the age of the alleged misconduct. However, recent decisions by the Supreme Court in the Kokesh and liu decisions, disgorgement may be considered only after deducting legitimate expenses incurred by the defendant and only if the disgorgement is awarded for the benefit of the victims. These decisions do expressly authorize the SEC to seek in federal courts disgorgement of any unjust enrichment sd s result of a securities law violation. These cases also set a 10 year statute of limitations for any equitable remedy including injunctions, bars, suspensions and cease and desist orders.
Jeff Newman JD MBA, represents whistleblowers nationwide relating to Medicare and Medicaid fraud, under the state and federal False Claims Act (Qui Tam) and corporate whistleblowers in major claims under the SEC, CFTC and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
