District Court Finds that Government did not Satisfy the Statute of Limitations in Suit Involving $160 Million Loss to Financial Institution

By Lewis Tesser and Timothy Nolen

An opinion from the United States District Court for the Southern District of New York demonstrates how the Statute of Limitations can stall criminal prosecutions. The case concerned issues of criminal law and criminal procedure.

The case, United States v. Carollo, 2011 U.S. Dist. LEXIS 121433 (S.D.N.Y. October 20, 2011), involved defendants who were accused of having committed wire fraud resulting in a $160 million loss to a financial institution. The defendants filed a motion to dismiss the charges, noting that the government had not filed the charges within ten years and failed to allege that the defendants had caused damage to any financial institution. Judge Baer agreed with the defendants, noting that the government failed to bring charges in a timely fashion and that the issue was not premature but was properly decided on a motion to dismiss.

Carollo highlights the importance of complying with the statute of limitations in criminal cases. At Tesser, Ryan & Rochman, our attorneys can identify similar criminal procedural issues and use them to our clients’ advantage.