Leahy Anti-Fraud Provision Added to Financial Regulatory Bill

[cali]

By Andrew Ramonas | June 25, 2010 3:11 pm

A conference committee reconciling differences between the House and Senate versions of a sweeping financial regulatory bill included a provision in the legislation that would extend the statute of limitations on some securities fraud offenses and seek to improve whistleblower protections.

Under the amendment, a person could face charges for certain securities fraud violations up to six years after the offense occurred. Under current law, the statute of limitations is five years.

The amendment would apply to the following securities violations:

18 U.S.C. 1348 — Securities and Commodities Fraud

15 U.S.C. 78ff(a) — False Statements/Failure to File Information Pursuant to the Securities Exchange Act of 1934

15 U.S.C. 77x — Willful violations of Securities Act of 1933

15 U.S.C. 80b–17– Willful violations of the Investment Advisors Act of 1940

15 U.S.C. 80a–48 — Willful violations of the Investment Company Act of 1940

15 U.S.C. 77yyy — Willful violations of the Trust Indenture Act of 1939

The amendment also would ask the U.S. Sentencing Commission to revise and increase the sentencing guidelines for securities and bank fraud offenses. According to the Senate Judiciary Committee, sentences for securities and bank fraud are often shorter than those for other white collar crimes. The amendment does not offer specific ranges for sentences but instead would ask the Sentencing Commission to make changes so the sentences are more in line with those for other forms of white collar crime.

<snip>

http://www.mainjustice.com/2010/06/25/leahy-anti-fraud-provision-added-to-financial-regulatory-bill/