Does the statute of limitations apply to a claim for damages arising out of a fraudulent transaction?

3 In Turner v. Lundquist (9 Cir. 1967) 377 F.2d 44, an investor filed an action for monetary relief based on alleged violations of certain federal statutes prohibiting the use of manipulative or deceptive devices in the sale of securities. In the absence of a federal statute of limitations, the court applied subdivision 4 of section 338 of the Code of Civil Procedure. The court, nothing that the plaintiff investor knew from the annual financial reports of the corporation more than three years before suit, that, among other things the corporation had not been returned to profitable operations, held the action barred. The court pointed out that failure to discover all of the details of the fraud did not prevent the statute of limitations from running.

Security First Nat. Bank v. Ross, 214 Cal.App.2d 424, 29 Cal.Rptr. 538, held that where a trustee through a tax sale acquired a 3/4 interest in property in which the trust had a 1/4 interest, as to the tolling of the statute of limitations, constructive notice of any wrongdoing by the trustee was given to all persons interested by the public nature of the tax sale.