Statutes of Limitations and Unanswered Questions in the New SEC Disgorgement Statute

11 Pages Posted: 20 Sep 2022

See all articles by Andrew N. Vollmer

Andrew N. Vollmer

Mercatus Center at George Mason University

Date Written: September 7, 2022

Abstract

Congress enacted a new disgorgement statute and limitations periods for enforcement cases brought by the Securities and Exchange Commission. A major and remarkable consequence of the statute is that a limitations period now governs most types of SEC enforcement cases. That is a significant reversal of the law as it stood since the Securities Act of 1933.

A further but unfortunate consequence of the new statute is that it has gaps and inconsistencies. It creates a series of questions about its application, the definition of disgorgement, and the limitations periods. Courts could face any of these questions when deciding an SEC enforcement case, and the SEC and defense lawyers could face them while litigating or negotiating a settlement.

This paper addresses both topics. It describes the broad coverage of the new limitations periods, and it outlines many unanswered questions created by the new statute.

Keywords: limitations, disgorgement, statute of limitations, SEC, enforcement, Liu, Kokesh

JEL Classification: K22, K23

Suggested Citation

Vollmer, Andrew N., Statutes of Limitations and Unanswered Questions in the New SEC Disgorgement Statute (September 7, 2022). Available at SSRN: https://ssrn.com/abstract=4211723. or http://dx.doi.org/10.2139/ssrn.4211723

Andrew N. Vollmer (Contact Author)

Mercatus Center at George Mason University ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

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