SEC mulls expanding ongoing cases after law change

The U.S. Securities and Exchange Commission is considering whether a new law that lets the agency claw back profits from decade-old schemes should be used to expand claims in a case brought two years ago, a lawyer for the agency said in Brooklyn federal court on Wednesday.

SEC Senior Trial Counsel Kevin McGrath told U.S. Magistrate Judge Vera M. Scanlon that the agency is still reviewing the law which took effect days ago, extending what had been a five-year statute of limitations for the SEC to seek disgorgement to ten years. McGrath said the law, which applies to ongoing cases, could potentially be used to expand allegations in the case against three people accused of defrauding investors in an oil technology company.

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Jody Godoy