SEC Retail Fraud Initiative: Pump-and-Dump Schemes, Market Manipulation, and Breaches of Duties

The SEC announced the creation of a new Retail Fraud Working Group on July 7, 2026, aimed at strengthening enforcement efforts against fraud targeting everyday investors.

The group will focus on misconduct affecting retail investors, including offering frauds, pump-and-dump schemes, market manipulation, and breaches of duties by investment advisers and broker-dealers.

Its role will include proactive case generation, coordination with U.S. and foreign regulatory partners, and investor education in cooperation with the SEC’s Office of Investor Education and Assistance.

SEC Chairman Paul Atkins described the initiative as a return to the core investor-protection mission of the enforcement program. Enforcement Director David Woodcock emphasized that the group will use focused resources, regulatory partnerships, data, and technology to identify and stop misconduct aimed at retail investors.

The working group will be led by Kate Zoladz, Deputy Director, West, and Kim Frederick, Assistant Director of the Asset Management Unit.

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