SEC creates groups to focus on fraud

According to the Financial Times, the Securities and Exchange Commission has been working to create four groups that will focus on fraud. The groups include one for hedge funds and insider trading, one for stock options backdating, and one for municipal bond issuance. The most recent group was set up in January, and focuses on subprime mortgage issues.

Walter Ricciardi, deputy director of enforcement for the SEC says that these working groups will be formed when issues arise, and he wants would-be criminals to know about their focus on fraud.

The groups are being set up to focus on specific types of cases, so that the SEC employees can maximize resources and share expertise.

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