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The SEC has established a task force to crack down on cross-border transaction fraud targeting U.S. investors

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2025-09-07 04:45:47
The Securities Exchange Commission (SEC) has announced the formation of a cross-border task force to combat cross-border transaction fraud that harms U.S. investors. The initial focus of the cross-border task force is to investigate potential U.S. federal securities law violations related to foreign companies, including potential market manipulation, such as'price gouging 'and'driving up shipments.' The task force will also focus on'gatekeepers, 'particularly auditors and underwriters who help these companies gain access to U.S. capital markets. In addition, the task force will examine potential securities law violations related to companies in foreign jurisdictions.
Paul Atkins, chairperson of the Securities Exchange Commission (SEC), said: "We welcome companies from around the world into US capital markets, but will not tolerate any bad actors seeking to use international borders to obstruct and circumvent US investor protections, whether by corporations or intermediaries. The new task force will strengthen the SEC's investigative work and enable the SEC to use all available tools to combat cross-border fraud."
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