SEC establishes cross-border task force to combat securities fraud

Odaily Planet Daily News: The U.S. Securities and Exchange Commission (SEC) announced on September 5 that it has established a cross-border task force to strengthen law enforcement agencies' work in identifying and combating cross-border fraud that harms U.S. investors.

The task force will prioritize investigations into suspected violations of U.S. securities laws by foreign companies, including potential market manipulation through pump-and-dump and ramp-and-dump practices. It will also focus on the gatekeepers who facilitate these companies' access to U.S. capital markets, particularly auditors and underwriters. Furthermore, the task force will examine potential securities violations by companies from certain jurisdictions, including China, where government control and other factors pose unique risks to investors.

SEC Chairman Paul S. Atkins said that global companies are welcome to enter the U.S. capital markets, but will not tolerate any company, intermediary, gatekeeper or trader using international borders to evade U.S. investor protections.

Margaret A. Ryan, director of the enforcement division, said the cross-border task force will pool resources and expertise to combat international market manipulation and fraud and effectively protect American investors.