House Passes Bill to Help SEC Recover Money from Fraudsters

The SEC would have more time to recoup money from Ponzi schemers and other scammers who bilk investors under bipartisan legislation the House has passed.

The House on Nov. 18 voted 314-95 to pass H.R. 4344, known as the Investor Protection and Capital Markets Fairness Act. The measure from Reps. Ben McAdams (D-Utah) and Bill Huizenga (R-Mich.) would overturn the Supreme Court’s 2017 Kokesh v. SEC decision limiting the Securities and Exchange Commission’s disgorgement power.

The ruling gave the SEC only five years to seek disgorgement of ill-gotten funds in federal court. But the agency may even lose that ...