The Securities and Exchange Commission (SEC) launched the Retail Fraud Working Group on Tuesday.
“This new working group reflects our commitment to protect investors from fraud and is a return to the core values and principles of the enforcement program,” SEC Chairman Paul Atkins said.
The group was designed to strengthen the Division of Enforcement’s efforts identifying and combating fraud targeting everyday investors. It will have two functions. It will identify fraud and other misconduct targeting retail investors such as breaches of duties to customers by investment advisers and broker dealers, market manipulation, offering frauds, and pump-and-dump schemes.
It will coordinate with the commission’s regulatory partners and foreign counterparts, serve as a dedicated resource for proactive case generation, and participate in educational outreach to retail investors in coordination with the SEC’s Office of Investor Education and Assistance.
“The Retail Fraud Working Group will bring focused energy and resources to that mission — generating cases, building partnerships with our regulatory counterparts, and using data and technology to find and stop those who seek to take advantage of retail investors,” David Woodcock, Division of Enforcement director, said.
Division of Enforcement Deputy Director West Kate Zoladz will lead the group along with Asset Management Unit Assistant Director Kim Frederick.