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.
