SEC Faces Uphill Battle In Supreme Court Gabelli Showdown

Law360, New York (January 4, 2013, 8:24 PM EST) -- When the U.S. Securities and Exchange Commission presents oral arguments Tuesday in Gabelli v. SEC, the agency's biggest challenge may be to convince the U.S. Supreme Court that it deserves more than five years to seek civil fraud penalties, a dubious proposition among defense attorneys.

At issue in the 2008 case is the agency's five-year window for filing civil enforcement actions that seek penalties. The SEC argues that the clock begins to run when it discovers an alleged fraud. The defendants in the case, two Gabelli...
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