SEC Launches Task Force on Fraud

SEC Launches Cross-Border Task Force to Combat Fraud

• The US Securities and Exchange Commission (SEC) has formed a cross-border task force to address fraud by foreign-based companies.
• This unit will focus on investigating securities violations, including pump-and-dump schemes, by these companies.
• The task force will scrutinize auditors and underwriters that facilitate access to US markets for foreign entities.
• Chairman Paul Atkins emphasized the SEC’s commitment to preventing bad actors from exploiting international borders to evade oversight.
• Enforcement Director Margaret Ryan indicated that the task force will consolidate resources to tackle cross-border manipulation and may introduce new disclosure rules.

The SEC has established a dedicated task force targeting fraud by foreign-based companies, focusing on securities violations such as pump-and-dump schemes. This initiative aims to enhance oversight of auditors and underwriters involved in facilitating market access for these entities.