On February 27, 2013 the Supreme Court announced its decision in Gabelli v. Securities and Exchange Commission. The question in this case was whether, under 28 U.S.C. § 2462, the five-year statute of limitations for the Securities and Exchange Commission to bring a civil penalty action against an investment advisor for securities fraud begins when the fraud occurs, or when it is discovered.
In an opinion delivered by Chief Justice Roberts, the Court held unanimously that the five-year time-limit begins to run when the fraud occurs, and not when it is discovered.
To discuss the case, we have Ronald Colombo, a Professor of Law at Hofstra University School of Law.