On Feb. 26, 2007, Southern District of New York Judge Richard Conway Casey dismissed the Securities and Exchange Commission’s action seeking civil monetary penalties and an injunction against former Citigroup Asset Management (CAM) executives Thomas W. Jones and Lewis E. Daidone. Casey found the SEC’s action was time-barred by the statute of limitations codified in 28 U.S.C. �2462.[FOOTNOTE 1]
Section 2462 is a “catch-all” limitations provision, which states that “an action, suit or proceeding for the enforcement of any civil fine, penalty, or forfeiture, pecuniary or otherwise, shall not be entertained unless commenced within five years from the date when the claim first accrued.”[FOOTNOTE 2] Casey’s decision illustrates the continuing difficulty confronting the SEC in pursuing non-recurrent securities law violations in certain cases, and the importance to defense counsel of considering the applicability of �2462 when representing individuals or entities in SEC investigations involving isolated and aging conduct.
