Court seems skeptical about gov't extension

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Associated Press

Posted on January 8, 2013 at 11:03 AM

Updated Tuesday, Jan 8 at 11:05 AM

WASHINGTON (AP) — The Supreme Court seems skeptical about government claims that it should be allowed more time to sue some fund executives for securities fraud.

The high court on Tuesday heard arguments from Gabelli Funds LLC executives Bruce Alpert and Marc J. Gabelli, who say the Securities and Exchange Commission missed its chance to sue them.

They were sued by the SEC in 2008 for allegedly committing securities fraud by allowing a hedge fund to rapidly trade shares of a mutual fund. The men say government officials sued them outside of the five-year statute of limitations, but the SEC says its time limit shouldn't have started until it discovered the practice.

Several justices questioned whether government officials had never asserted this ability to stretch out the statute of limitations before this case.

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