The Securities and Exchange Commission must prosecute some fraud cases within five years of their occurrence, rather than five years from some indication of wrongdoing, the U.S. Supreme Court said Wednesday.
The justices unanimously ruled in favor of two Gabelli Funds officials seeking to block SEC claims that they improperly let a client engage in market timing, a practice of making frequent, short-term trades at the expense of other investors. They contend the SEC missed the law’s five-year deadline to file the suit.
The ruling contrasted with a 2010 ruling in which the court ruled that the two-year period for shareholder fraud suits didn’t begin until investors had indications of intentional company wrongdoing. But in this case the court said the SEC’s job was to suspect and root out fraud.
A good 2011
Native American casino revenue rose 3 percent to $27.4 billion in 2011, an industry study reported Wednesday.
The casinos also held on to their share of total casino gambling revenue, competing closely with commercial casinos, according to the report.
Gambling at tribal-run casinos generated 43 percent of U.S. casino gambling revenue in 2011, the report said. Revenue at commercial casinos was 45 percent and revenue from “racinos” — casinos that operate at racetracks — accounted for the remaining 12 percent. That’s unchanged from 2010, but it represents a huge gain from the Indian casino share of less than 20 percent in 1993.
| The Associated Press