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New SEC Task Force to Target Cross-Border Fraud

"... we will not tolerate bad actors – whether companies, intermediaries, gatekeepers or exploitative traders – that attempt to use international borders to frustrate and avoid U.S. investor protections."
SEC Chairman Paul S. Atkins
"... we will not tolerate bad actors – whether companies, intermediaries, gatekeepers or exploitative traders – that attempt to use international borders to frustrate and avoid U.S. investor protections."
SEC Chairman Paul S. Atkins

The SEC established a task force within the Division of Enforcement to bolster its response to cross-border fraud directed at U.S. investors.

According to the SEC’s release, the Cross-Border Task Force will initially prioritize investigations involving foreign-based companies that are potentially engaged in market manipulation schemes such as "pump-and-dump" or "ramp-and-dump" activity. The SEC stated that the task force will "focus enforcement efforts on gatekeepers, particularly auditors and underwriters, which help these companies access the U.S. capital markets." The SEC said "it will examine potential securities law violations related to companies from foreign jurisdictions, such as China, where governmental control and other factors pose unique investor risks." 

 

 

 

Primary Sources

  1. SEC: Press Release: SEC Announces Formation of Cross-Border Task Force to Combat Fraud

Tags

Individuals
Paul S. Atkins
Regulated Activities
Suitability and Consumer Protection
Sub-Activity
Fraud
Regulated Entities
Foreign Entities
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
SEC