Political Quotes

“I submit for the Record a letter on this legislation from the Chair of the SEC, Mr. Clayton. United States Securities and Exchange Commission, Washington, DC, November 17, 2019. Re H.R. 4344, the Investor Protection and Capital Markets Fairness Act. Hon. Nancy Pelosi, Speaker, House of Representatives, Washington, DC. Hon. Kevin McCarthy, Republican Leader, House of Representatives, Washington, DC. Dear Speaker Pelosi and Leader McCarthy, I write concerning the importance to our investors and our markets of the Securities and Exchange Commission's (SEC or Commission) authority to seek disgorgement of unjust enrichment from those who have violated the federal securities laws. This authority is particularly important in circumstances where retail investors have been the victims of long-running, well- concealed frauds, including Ponzi schemes. For these victims, an action by the SEC seeking disgorgement may be the only practical means of recourse. The recent Supreme Court decision in Kokesh v. SEC, 137 S. Ct. 1635 (2017), significantly limited the SEC's authority to seek disgorgement. In Kokesh, the Supreme Court found our use of the disgorgement remedy operated as a penalty, which subjected that remedy to a five-year statute of limitations from the date of the misconduct. As a result, our ability to address well-concealed frauds has been significantly restricted, including in situations where our Main Street investors need us most.…”