The Second Circuit rejected a challenge to the SEC’s venue selection decisions, concluding that the district court did not have jurisdiction to hear an issue regarding the Appointments Clause. This is the third circuit court to conclude that any such challenge must be presented through the administrative process.
The Eleventh Circuit concluded that the five year statute of limitations for penalties barred an SEC request for disgorgement and declaratory relief but not for an injunction. Since the statute imposes time limits on penalties which are backward looking and punishment the court concluded that remedies which had similar effects such as declaratory relief and disgorgement were subject to the limitation period but not those which were forward looking like an injunction.
The SEC also filed a series of enforcement actions including: another offering fraud action tied to the EB-5 program; its first ever action based solely on the failure to file a SAR; an insider trading action where an investment banker tipped his plumber; an action against an investment adviser who received transaction based compensation in connection with certain transactions and thus acted as an unregistered broker; and one in which the firm charged excessive fees by moving client funds into new funds which charged higher fees but used the same investment strategy.
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