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New SEC Initiatives Focus on Financial Reporting and Microcap Stock Trading

July 05, 2013

By THE SECURITIES LITIGATION AND ENFORCEMENT PRACTICE

On July 2, 2013, the U.S. Securities and Exchange Commission announced the creation of two new task forces and a new analytics center that will likely lead to an increased number of investigations in matters related to potential accounting fraud and fraud in microcap stock trading. These initiatives reflect new SEC Chairman Mary Jo White's desire to refocus on accounting fraud and to commit more rigorous attention to microcap stock trading, while employing innovative strategies and new technologies to aid the staff in fraud detection and case building.