NEW YORK – Senate Deputy Leader Gianaris announced legislation to extend the statute of limitation for financial crimes. The legislation was signed by New York Governor Andrew Cuomo and goes into effect immediately.
Gianaris’ legislation reinstates a 6-year statute of limitations on Martin Act Violations, a 1920s-era law used to prosecute financial fraud on Wall Street.
“The Martin Act has become an invaluable tool for enforcement against financial crimes and unfortunately a misguided court decision made it harder to use that tool,” said Senate Deputy Leader Michael Gianaris.
“We wanted to go back to the way it was originally used and allow the state the maximum time possible to go after wrongdoing in the financial services industry. I am pleased the Governor signed this legislation and I am pleased to work with the Attorney General to fight financial crimes.”
Last year, the New York State Court of Appeals ruled the Martin Act could only have a three-year statute of limitations. Previous interpretations had allowed the state’s Attorney General to use a six-year statute of limitations, making the law significantly more powerful in fighting financial crimes and securities fraud, securing more than a billion dollars in relief for New Yorkers.