SEC Announces Formation of Cross-Border Task Force to Combat Fraud
The SEC established a Cross-Border Task Force to combat transnational fraud, targeting foreign-based companies and gatekeepers to protect U.S. investors from international market manipulation.
The SEC formed a Cross-Border Task Force to investigate federal securities law violations involving foreign-based companies and gatekeepers like auditors and underwriters. The initiative focuses on market manipulation schemes, such as 'pump-and-dump' and 'ramp-and-dump' operations, particularly in high-risk jurisdictions like China. While specific dollar amounts are not yet defined, the task force consolidates multiple SEC divisions to enhance enforcement and disclosure guidance.
The Securities and Exchange Commission has launched a new Cross-Border Task Force to strengthen enforcement against transnational fraud targeting U.S. investors. This initiative focuses on investigating foreign-based companies and gatekeepers, such as auditors and underwriters, who facilitate access to U.S. capital markets. Key areas of focus include market manipulation schemes like 'pump-and-dump' and 'ramp-and-dump' and addressing unique risks in jurisdictions like China. Chairman Paul S. Atkins emphasized that the SEC will use all available tools to prevent bad actors from using international borders to evade protections. To support this, the Chairman has directed various SEC divisions to recommend new disclosure guidance and rule changes. Division of Enforcement Director Margaret A. Ryan noted that the task force will leverage existing resources to combat international market manipulation. Ultimately, the task force aims to consolidate investigative efforts to ensure a more robust regulatory environment for U.S. investors.
Extracted insights
- person chairman atkins
- person investigative efforts
- agency sec chairman paul s. atkins
- agency Securities and Exchange Commission
- person task force
- SEC announced formation of Task Force
- Cross-Border Task Force will focus on investigating potential U.S. federal securities law violations
- Task Force will focus enforcement efforts on gatekeepers, particularly auditors and underwriters
- Task Force will examine potential securities law violations related to companies from foreign jurisdictions such as China
- SEC Chairman Paul S. Atkins said we welcome companies from around the world seeking access to the U.S. capital markets
- SEC will consolidate investigative efforts
- SEC will use every available tool to combat transnational fraud
- Chairman Atkins directed staff in other SEC divisions and offices to consider and recommend other actions to better protect U.S. investors
- Division of Enforcement Director Margaret A. Ryan said Cross-Border Task Force will leverage the Division of Enforcement’s resources and expertise to combat international market manipulation and fraud
The Securities and Exchange Commission today announced the formation of a task force that will strengthen and enhance the Division of Enforcement’s efforts to identify and combat cross-border fraud harming U.S. investors. The Cross-Border Task Force will focus initially on investigating potential U.S. federal securities law violations related to foreign-based companies, including potential market manipulation, such as “pump-and-dump" and "ramp-and-dump" schemes. The task force also will focus enforcement efforts on gatekeepers, particularly auditors and underwriters, which help these companies access the U.S. capital markets. In addition, 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. “We welcome companies from around the world seeking access to the U.S. capital markets,” said SEC Chairman Paul S. Atkins. “But 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. This new task force will consolidate SEC investigative efforts and allow the SEC to use every available tool to combat transnational fraud.” “I have also directed the staff in other SEC divisions and offices, including the Divisions of Corporation Finance, Examinations, Economic and Risk Analysis, and Trading and Markets as well as the Office of International Affairs, to consider and recommend other actions that would better protect U.S. investors, including new disclosure guidance and any necessary rule changes," continued Chairman Atkins. Division of Enforcement Director Margaret A. Ryan said, “The Cross-Border Task Force will leverage the Division of Enforcement’s resources and expertise to combat international market manipulation and fraud. We are pleased to be part of this critical effort to enforce the federal securities laws and protect U.S. investors.”
The Securities and Exchange Commission today announced the formation of a task force that will strengthen and enhance the Division of Enforcement’s efforts to identify and combat cross-border fraud harming U.S. investors. The Cross-Border Task Force will focus initially on investigating potential U.S. federal securities law violations related to foreign-based companies, including potential market manipulation, such as “pump-and-dump" and "ramp-and-dump" schemes. The task force also will focus enforcement efforts on gatekeepers, particularly auditors and underwriters, which help these companies access the U.S. capital markets. In addition, 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. “We welcome companies from around the world seeking access to the U.S. capital markets,” said SEC Chairman Paul S. Atkins. “But 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. This new task force will consolidate SEC investigative efforts and allow the SEC to use every available tool to combat transnational fraud.” “I have also directed the staff in other SEC divisions and offices, including the Divisions of Corporation Finance, Examinations, Economic and Risk Analysis, and Trading and Markets as well as the Office of International Affairs, to consider and recommend other actions that would better protect U.S. investors, including new disclosure guidance and any necessary rule changes," continued Chairman Atkins. Division of Enforcement Director Margaret A. Ryan said, “The Cross-Border Task Force will leverage the Division of Enforcement’s resources and expertise to combat international market manipulation and fraud. We are pleased to be part of this critical effort to enforce the federal securities laws and protect U.S. investors.”