US lawmakers seeking to improve SEC recovery of defrauded investors' funds

17 May 2018 4:30pm
Lawmakers of both parties said they want to explore a possible fix to a recent curb on the Securities and Exchange Commission’s ability to recover defrauded investors’ funds.

The SEC’s co-enforcement chiefs testified Wednesday that a US Supreme Court ruling last year has deprived investors of more than $800 million that could have been recouped for them in litigated and settled cases during the last 12 months.

“What I want to know is, what we as Congress can do to ensure bad actors aren’t able to profit from their misbehavior and their fraudulent actions, and then get that remedy back to investors?” Representative Bill Huizenga, head of the House Financial Services subcommittee, said at the hearing.

Representative Carolyn Maloney, the panel’s top Democrat, turned to Huizenga and said “I look forward to working with you on the point you just made.”