SEC Forms New Retail Fraud Working Group

The Securities and Exchange Commission announced the formation of a Retail Fraud Working Group on July 7, 2026, aiming to intensify its fight against schemes that target everyday investors [1]. The new unit will draw on staff and resources from across the Commission to identify misconduct including offering frauds, pump-and-dump schemes, market manipulation, and breaches of duty by investment advisers and broker-dealers [1]. It is also tasked with proactive case generation and coordinating with regulatory partners and foreign counterparts [1]. SEC Chairman Paul S. Atkins stated the initiative “is a return to the core values and principles of the enforcement program” [1]. David Woodcock, Director of the SEC’s Division of Enforcement, said the group will use “data and technology to find and stop those who seek to take advantage of retail investors” [1]. The working group will be led by Kate Zoladz, Deputy Director, West, and Kim Frederick, Assistant Director in the Asset Management Unit [1]. The SEC, created in the aftermath of the 1929 Wall Street crash, enforces laws against market manipulation under statutes including the Securities Exchange Act of 1934 and the Sarbanes–Oxley Act of 2002 [3]. Retail-focused fraud has taken many forms historically. The Commodity Futures Trading Commission noted that currency trading became a common form of fraud in early 2008, with schemes convincing traders they could expect high profits in what is at best a zero-sum game before transaction costs [2]. The working group will also participate in educational outreach to retail investors in coordination with the SEC’s Office of Investor Education and Assistance [1].