How long can you go back with a clawback claim?
Minneapolis Bankruptcy attorney Steven Silton explains that clawback’s can go back 2, 6, or 8 years. In the case of a Ponzi scheme, the clawback can go as far back as the inception of the Ponzi scheme.
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Under bankruptcy law, the Statute of Limitations is two years from the date of filing. Under state law, that Statute of Limitations is often extended to six or eight years. However, with regard to the Ponzis the trustees have gone back essentially since the inception of the Ponzi, claiming rightly or wrongly that individuals who receive payment pursuant to that fraudulent business were a participant in the fraudulent scheme, and as such, should be held liable for payments since the inception.