SEC forms cross-border task force to combat fraud

The Securities and Exchange Commission announced the formation of a task force that it said will strengthen and enhance efforts to identify and combat cross-border fraud harming U.S. investors.

Details: The SEC said 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.

• Focus enforcement efforts on gatekeepers, particularly auditors and underwriters, which help these companies access the U.S. capital markets.

• Examine potential securities law violations related to companies from foreign jurisdictions, such as China, where governmental control and other factors pose unique investor risks.