The SEC announced Tuesday it has revived its Retail Fraud Working Group within the Division of Enforcement, targeting scams aimed at everyday investors after years of dormancy. The unit will pursue offering fraud, pump-and-dump schemes, market manipulation, and broker-dealer misconduct while coordinating with domestic and international regulators. Enforcement Director David Woodcock first signaled the move in May, aligning with Chairman Paul Atkins’ strategy to refocus the agency on fraud cases rather than broader regulatory enforcement.
The revival comes amid sharp contradictions in SEC activity. The agency filed 456 enforcement actions in fiscal 2025, down 22% year-over-year, with actions against public companies dropping 30%. The SEC has simultaneously cut enforcement staff and shuttered regional offices as part of Atkins’ restructuring. Leadership frames the new unit as proof of focused priorities, arguing targeted cases protect investors better than volume-driven enforcement under predecessor Gary Gensler.
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** Brokers and investment advisers should expect heightened scrutiny on retail-facing conduct and disclosure practices, even as overall SEC enforcement numbers decline.
Source: Finance Magnates