SEC Establishes a Special Task Force to Combat Cross-Border Transaction Fraud Targeting U.S. Investors

September 7th. According to an official proclamation, the U.S. Securities and Exchange Commission (SEC) has declared the formation of a cross-border special task force with the aim of combating cross-border transaction fraud that poses a threat to U.S. investors. The initial emphasis of the cross-border special task force is to investigate potential violations of U.S. federal securities laws involving foreign companies, including potential market manipulation such as "pump and dump" schemes. The task force will also give special attention to "gatekeepers," specifically auditors and underwriters that assist these companies in accessing the U.S. capital markets. Furthermore, the task force will review potential securities law violations related to companies in foreign jurisdictions. SEC Chairman Paul Atkins stated, "We extend a warm welcome to companies from all over the world to access the U.S. capital markets. However, we will not show any tolerance for any bad actors - be it companies, intermediaries, or gatekeepers - who attempt to exploit international borders in order to evade U.S. investor protections. The newly established special task force will enhance the SEC's investigative efforts and enable the SEC to utilize all available means to combat cross-border fraud."