Kokesh v. SEC

Summarized by:

  • Court: United States Supreme Court
  • Area(s) of Law: Remedies
  • Date Filed: June 5, 2017
  • Case #: No. 16–529
  • Judge(s)/Court Below: SOTOMAYOR, J., delivered the opinion for a unanimous Court.
  • Full Text Opinion

The 5-year statute of limitations, under 28 U. S. C. §2462, applies to securities-enforcement disgorgement claims.

In 2009, Respondents filed a security enforcement action against Petitioner for the misappropriation of $34.9 million from his development companies between 1995 and 2009. A jury found Petitioner guilty of the misappropriation, and the Tenth Circuit affirmed the judgment in favor of Respondent for the full amount requested, plus interest. The U.S. Supreme Court reviewed whether the 5-year statute of limitations, pursuant to 28 U. S. C. §2462, applied. The Court determined that the 5-year statute of limitations did apply, because the disgorgement enforcement was a penalty under §2462. The Court considered whether the misappropriation enforcement was intended to remedy a harm to the public, and the enforcement was a means of deterring the conduct considered to be harmful. Because the action was in the public’s interest and was punitive, the Court held that §2462 applied. REVERSED.

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