The U.S. Securities and Exchange Commission is in high demand. Having repeated last year’s total of distributing more than $1 billion to investors who fell victim to fraudulent actions, they also brought 671 enforcement actions in 2008.

“The SEC’s role in policing the markets and protecting investors has never been more critical,” Linda Chatman Thomsen said.

There has been a spike of up to 25% in insider trading cases and more than 45% in market manipulation cases. Major fraud cases included a suit against a Wall Street short seller for “spreading false rumors about a company and profiting from the stock price’s subsequent drop.”

Another mentionable suit was against two former Bear Stearns hedge fund managers for misleading investors about two of the company’s hedge funds. And on the rise are Foreign Corrupt Practices Act (FCPA) cases that involve U.S. public company bribery of foreign officials.

Good to know! Hopefully the current economy slip will push for stricter laws, better protection and more preventative steps geared towards stopping another “financial” outbreak.”

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