SEC v. Fowler, No. 20-1081 (2d Cir. 2021)Annotate this Case
In this SEC enforcement action, defendant appealed the district court's judgment entered after a jury found that he recommended an unsuitable trading strategy and made unauthorized trades in customer accounts.
The Second Circuit affirmed, holding that 28 U.S.C. 2462, which imposes a five-year statute of limitations on SEC enforcement actions for civil penalties, is not jurisdictional and may be tolled by the parties. The court also concluded that the SEC's suitability claim and the civil penalties imposed in this case were proper and that the other challenges on appeal are without merit. The court modified the judgment to correct one error in the amount of disgorgement.