U.S. SEC sets new effort to combat accounting fraud in microcaps
WASHINGTON, July 2 (Reuters) - U.S. securities regulators on Tuesday laid out three new enforcement initiatives aimed at improving how the agency detects and investigates accounting fraud and abusive trading in microcap stocks.
The changes are the latest in a broader shakeup of the Securities and Exchange Commission's enforcement division since April, when former federal prosecutor Mary Jo White took over the helm of the agency.
The enforcement division's co-directors said they plan to launch a financial reporting and audit task force, a microcap fraud task force and a new Center for Risk and Quantitative Analytics that will ferret out risks and threats to investors.
(Reporting by Sarah N. Lynch; Editing by Gerald E. McCormick)