SEC Gives Staff More Power to Launch Investigations

By February 16, 2021 Investment Fraud

The Securities and Exchange Commission (“SEC”) recently announced it was giving senior enforcement officers the ability to approve formal orders of investigation in an effort to give the department more resources to crack down on fraud.

Acting SEC Chair Alison Herren Lee stated in a news release:

“[T]oday I restored a vital tool to our enforcement program to better protect investors by authorizing senior officers in the division to approve the issues of a Formal Order of Investigation. . . . This delegation of authority will enable investigative staff to act more switful to detect and stop ongoing frauds, preserve assets, and protect vulnerable investors.”

Lee stated that this authority “helps to ensure that investigative staff can work effectively to protect investors in an era when the pace of fraud – like the pace of markets themselves – is ever more rapid.”

An article in Investment News speculated that the SEC action is in response to the recent trading explosion in Gamestop and other similar stocks that have rocked the investment world recently.

Fishman Haygood’s Investment Fraud Division monitors activity by the SEC, FINRA and other regulatory agencies activity to keep abreast of how these entities are looking out for investors. If you believe you have suffered losses due to the advice and/or actions of your broker or investment advisor, please contact us to discuss your possible claim.