Peter Altman Quoted in Regulatory Compliance Watch on Ramifications of Kokesh Decision on SEC

June 16, 2017

Reading Time : 1 min

Contact:

Jacinta O'Shea-Ramdeholl

Director of Communications

Sarah Richmond

Senior Communications Manager

Regulatory Compliance Watch has quoted Akin Gump senior counsel Peter Altman in the article “Options open to the SEC following High Court enforcement disgorgement loss,” which looks at a recent Supreme Court decision that places a five-year statute of limitations on disgorgement assessed by the Securities and Exchange Commission.

The unanimous ruling in Kokesh v. SEC, according to Altman, “is a really big deal.” Formerly of the SEC’s Division of Enforcement, Altman said to look for the agency to push defendants to sign a “tolling agreement,” which basically stops the statutory clock. He said the commission could pressure parties by stating that if you want full credit for cooperating, you’d better sign a tolling agreement.

Other ramifications of the ruling, Altman said, include the Commodity Futures Trading Commission possibly being challenged on its own disgorgement practices or the IRS declaring disgorgement as not tax deductible now that it’s seen as being punitive. Additionally, he continued, insurance companies might exclude disgorgement in policies.

The so-called elephant in the room, according to Altman, is a footnote in Justice Sonia Sotomayor’s decision suggesting that future challenges could succeed in questioning the SEC’s ability to seek any disgorgement, regardless of when.

To read an Akin Gump client alert on the Kokesh decision that was co-authored by Altman, please click here.

Share This Insight

People Mentioned in This News

© 2024 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.