Congressman Gonzalez Bill to Reduce Financial Crime and Fraud Clears House Financial Services Committee
WASHINGTON – Congressman Vicente Gonzalez (TX-15) successfully ushered H.R. 3701, the Strengthening Fraud Protection Provisions for SEC Enforcement Act of 2019, through the House Financial Services Committee on Tuesday. This legislation aims to strengthen the ability to prevent fraud and punish bad actors.
H.R. 3701 would increase the statute of limitations for investigations in the instances of financial fraud and abuse to 10 years. The bill also seeks to close a liability loophole by extending the statute of limitations for consumers to pursue legal action against certain companies acting in bad faith.
"With this bill, I hope to prevent the future Bernie Madoffs and Charles Kokesh's of the world from preying on our seniors, veterans and vulnerable communities," said Congressman Gonzalez. "Tens of thousands of people have been affected by financial scams – and enough is enough. This is an opportunity to do right by our past and enact legislation that would deter bad actors and help innocent Americans recover money that was swindled out of their pockets."
In the Supreme Court Case Gabelli et al. v Securities And Exchange Commission, the Court ruled that the statute of limitations for filing a civil lawsuit against a bad actor begins when the offending act is committed or finished. Under current U.S. Code, the statute of limitations for financial fraud is only five years.
More information on H.R. 3701 is available here.