When SEC deadlines begin
Marc J. Gabelli and Bruce Alpert v. Securities and Exchange Commission
In brief
The five-year clock for the SEC's enforcement case starts when the alleged violation occurs, and the Supreme Court overturned the Second Circuit's contrary ruling.
- Where it stands
- Decided
Decided 9-0 · February 27, 2013 · Opinion by Chief Justice Roberts
- What it’s about
- Marc Gabelli and Bruce Alpert’s case concerned when the five-year time limit for the SEC to bring an enforcement action starts: when the alleged violation occurs or when it is discovered.
- Who it affects
- For SEC enforcement actions covered by §2462, the five-year period starts when the violation happens, not when the SEC discovers it.
Summary: written with AI from the case record.
What it's about
The Court ruled that the clock starts when the violation occurs, overturned the Second Circuit’s ruling, and sent the case back to the lower court (remanded).
Section 2462 sets the five-year deadline at issue in the SEC's fraud enforcement case.
Question presented
Does the five-year statute of limitations begin when the SEC can first bring an action, or when the alleged violation is committed?
What the Court decided
Holding
The five-year clock in §2462 begins to tick when the fraud occurs, not when it is discovered. 653 F. 3d 49, reversed and remanded.
- Result
- Reversed
The Court's reasoning
The Court explained that a fraud victim's lack of knowledge does not delay the deadline in a government enforcement case.
The vote
What's next
The case returns to the Second Circuit for further proceedings under the Supreme Court's timing rule.
Documents
Opinions
Audio
Docket activity
New analysis added
AI analysis generated: Case Briefing
New analysis added
AI analysis generated: Impact Analysis
AI analysis generated: Opinion Summary
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AI analysis generated: Decision Record
Case data updated: summary, question_presented, generation_metadata
Case data updated: question_presented, extraction_metadata
Audio Recording added: Oral Arguments - Gabelli
Opinion added: Gabelli
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.