New York lawmakers are shoring up the state attorney general’s ability to combat Wall Street misconduct with a bill that restores the maximum six-year limitation period under key investor protection legislation.
The Office of the Attorney General (AG) in New York has announced that the state has passed a bill that makes the statute of limitations six years under the Martin Act, a law that is often used to prosecute alleged corporate crime. The statute of limitations has also been extended to six years under New York’s Executive Law, another key consumer protection law.
The initiative followed a previous court ruling that cut the limitation period to three years.
“By restoring the six-year statute of limitations under the Martin Act, we are enhancing one of the state’s most powerful tools to prosecute financial fraud so we can hold more bad actors accountable, protect investors and achieve a fairer New York for all,” said New York’s governor, Andrew Cuomo, in a statement issued on Monday.
“If Main Street has to play by a set of rules, then so must Wall Street. This law strengthens two of our most critical tools in holding corporate greed accountable and delivering justice for victims of financial fraud,” said New York’s AG, Letitia James.
“As the federal government continues to abdicate its role of protecting investors and consumers, this law is particularly important. New York remains committed to finding and prosecuting the bad actors that rob victims and destabilize markets,” she added.