U.S. Supreme Court May Curb SEC Power to Recoup Illegal Gains
- Justices indicate they may apply statute of limitations
- High court argument centers on SEC’s ‘disgorgement’ power
The 'Contemplation of Justice' statue sits in front of the Supreme Court building in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
U.S. Supreme Court justices signaled they will scale back the power of the Securities and Exchange Commission to recoup money taken years earlier in violation of federal law.
Hearing arguments in Washington, justices from across the court’s ideological spectrum suggested they thought the SEC is bound by a five-year statute of limitations when it seeks “disgorgement,” or the return of illegal profits.