Timbervest LLC v. SEC
- Case Date: 4/29/2016
- Project Name: Civil Justice Reform
On April 29, 2016, WLF asked the U.S. Court of Appeals for the D.C. Circuit to vacate a final order of the U.S. Securities and Exchange Commission (SEC) that not only imposes liability on the defendant company and its principals well beyond the five-year statute of limitations, but also violates the constitutional separation of powers by placing federal enforcement authority in the hands of an administrative law judge (ALJ) who is unaccountable to the President. The case, which arises from an SEC enforcement action against registered investment adviser Timbervest, LLC and its four principals, epitomizes the SECís increased tendency to opt for enforcement of federal securities laws before its own ALJs rather than before Article III judges in federal court. Although Congress established a five-year limitations period for the enforcement of any civil penalty, the SEC continues to contend that the statute of limitations imposes virtually no constraints on its enforcement authority.
|Awaiting oral argument.|
More Information and Downloads:
|4/29/2016: Download the Brief|
|Press Release: WLF Asks D.C. Circuit to Vacate SECís Erroneous and Unconstitutional Enforcement Action|