FRAUD / INVESTOR RIGHTS – Securities Fraud Enforcement and Investor Compensation Act of 2019
March 18, 2019
The proposed Securities Fraud Enforcement and Investor Compensation Act of 2019 is a bipartisan legislation introduced by Sen. John Kennedy, R-La and Sen. Mark Warner, D –Va., both of which serve on the Senate Banking Committee. The proposed bill would give the Securities and Exchange Commission (SEC) 10 years to pursue fraud claims, including 5 years for disgorgement.
Currently SEC only has a five-year window to bring a disgorgement claim against bad actors. Disgorgement claims limit recovery to ill-gotten gains from funds that were received through illegal or unethical practices and the recouped ill-gotten profits are then turned over to the harmed investor. Under the new bill, rather than limiting compensation to ill-gotten profit margins in a five-year window; harmed investors could be made whole and entitled to the full amount of their losses, up to ten-years after the fact.
The link to the full text of the proposed Securities Fraud Enforcement and Investor Compensation Act of 2019 can be found below
If you or someone you know have fallen victim to fraud, investment fraud or have any questions as to investor rights, we encourage you to call our offices today at 619-432-5145 for a free consultation with one of our Fraud Attorneys and Investment Lawyers.