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The Boston Globe

Business

Too late for N.Y. prosecution in securities meltdown

ALBANY, N.Y. — While New York Attorney General Eric Schneiderman alleges massive fraud in mortgage-backed securities in a lawsuit filed this week, he is not criminally prosecuting anyone.

Described as a template for more lawsuits to follow, the move signals that Wall Street players will not face state prison for packaging and selling the troubled investments that nearly brought the US economy to its knees. The felony statute of limitations under New York’s Martin Act against securities fraud is five years, so it is too late to bring a criminal case.

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