Last week, the US Securities and Exchange Commission (SEC) announced a new working group to help fight securities fraud directed toward retail investors.
The SEC’s Retail Fraud Working Group will focus on fraud against consumer investors, including alleged pump-and-dump schemes, offering frauds, market manipulation, and suspected breaches of duties by investment advisers or broker dealers. DOJ’s Division of Enforcement’s Kate Zoladz, Deputy Director (West region) and Kim Frederick, Assistant Director, Asset Management Unit, will lead the Retail Fraud Working Group.
According to the SEC, the new working group will use the SEC’s staff and resources to strengthen the Division of Enforcement’s efforts for proactive case generation and to conduct educational outreach in coordination with the Commission’s Office of Investor Education and Assistance.
“Nothing motivates enforcement staff more than protecting those who invest their savings in our markets,” said David Woodcock, Director of the SEC’s Division of Enforcement. “The Retail Fraud Working Group will bring focused energy and resources to that mission — generating cases, building partnerships with our regulatory counterparts, and using data and technology to find and stop those who seek to take advantage of retail investors.”
Whistleblowers can play an important part in assisting this mission. Individuals who have knowledge of frauds against retail investors and want to report these frauds to the SEC can do so by submitting tips to the SEC’s Whistleblower Program, the program that financially awards individuals for voluntarily providing the SEC with original information about a possible violation of federal securities laws. If the SEC orders more than $1 million in sanctions as a result of the whistleblower’s information, a whistleblower may receive up to 30% of the monies collected. Whistleblowers can make anonymous submissions to the Program through an attorney.
SEC whistleblower claims aren’t limited to retail investor fraud, and whistleblowers can report other types of securities law violations, including accounting fraud, mispricing of stock, insider trading, money laundering, cryptocurrency fraud, Ponzi or pyramid schemes, theft or misuse of securities, market manipulation, and violations of the Foreign Corrupt Practices Act (FCPA). As of 2025, the SEC whistleblower program overall has collected over $6.3 billion as a result of whistleblowers.
Phillips & Cohen is the most successful law firm representing whistleblowers, with recoveries from cases totaling over $13 billion. Phillips & Cohen clients have received 26 awards under the SEC and CFTC whistleblower reward programs created by the Dodd-Frank statute. P&C’s roster includes the former first head of the SEC Office of the Whistleblower, Sean McKessy, the former Director of the Whistleblower Office of the CFTC, Christopher Ehrman, the attorney with the most awards under these Dodd-Frank whistleblower awards programs, Erika Kelton, and numerous attorneys with decades of experience representing whistleblowers under the Dodd-Frank Whistleblower Programs and other whistleblower programs.
If you think you know of possible securities fraud and would like to speak to an experienced SEC whistleblower attorney, contact Phillips & Cohen.