This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

SEC announces enforcement initiatives to combat financial reporting and microcap fraud

  • SEC (US Securities and Exchange Commission) Image

Jul 02, 2013

The SEC has announced three new initiatives for its Division of Enforcement to help it focus on high-risk areas as it tries to detect fraud. The initiatives are designed to bring new technology and analytical capacity to the Division’s investigations.

Financial Reporting and Audit Task Force

The Financial Reporting and Audit Task Force will concentrate on expanding and strengthening the Division's efforts to identify violations in the preparation of financial statements, issuer reporting and disclosure, and audit failures. The principal goals of the Task Force will be fraud detection and increased prosecution of violations involving false or misleading financial statements and disclosures.

Microcap Fraud Task Force

The Microcap Fraud Task Force will investigate fraud in the issuance, marketing, and trading of microcap securities. The principal goal of the Task Force will be to develop and implement strategies for detecting and combating fraud in the microcap market, especially by targeting attorneys, auditors, broker-dealers, transfer agents, and other significant participants.

Center for Risk and Quantitative Analytics

Lastly, the SEC announced that the Center for Risk and Quantitative Analytics will support the Division by identifying risks and threats that could harm investors and assisting staff nationwide in conducting risk-based investigations and developing methods of monitoring for signs of possible wrongdoing.

Click for press release (link to the SEC's Web site).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.