US SEC launches Cross-Border Task Force to combat fraud by foreign-based companies targeting U.S. investors, focusing on pump-and-dump schemes, gatekeeper failures, and high-risk jurisdictions

The Cross-Border Task Force aims to identify and investigate potential violations of U.S. federal securities laws by foreign-based companies, including market manipulation schemes such as “pump-and-dump” and “ramp-and-dump.” It also seeks to scrutinize gatekeepers like auditors and underwriters and address unique risks posed by companies in jurisdictions with heightened governmental control, such as China, to better protect U.S. investors…