It's (Never) Too Late
Criminal felons accused of sexual abuse know that if the prosecuting authorities delay too long, the charges could be time barred by applicable statutes of limitations. Similarly, civil defendants accused of egregious commercial fraud involving Ponzi schemes with numerous victims can rely on a statue of limitations defense if the victims wait too long to commence a lawsuit. Notions of fair play, concerns over faded memories, the reasonable expectation that legitimate claims will be pursued in a timely manner and the public policy discouraging the pursuit of stale claims, all support the enforceability of bright line statutes of limitations for criminal and civil charges.
According to the NASD, however, NASD members have no such protection when the Department of Enforcement brings disciplinary action. Instead of the safeguard of bright line limitations, periods enjoyed by accused criminals and civil litigants, the NASD contends that when looking at the delay in bringing enforcement action, it is appropriate to consider the entire fairness of the proceeding based on the entire record.
