In early June, federal agencies brought some of the first enforcement actions against COVID-19 securities fraudsters, involving over $100 million in fraudulent claims and profits, making good on their promise to investigate and prosecute those seeking to fraudulently capitalize on the COVID-19 crisis. The cases generally involve misleading claims about companies’ ability to supply COVID-19 testing or protection products, but regulators have targeted activity from two different angles—the operations and statements by companies themselves, and trading activity by investors attempting to manipulate the market. DOJ appears to have donned the mantle of examining misconduct by company executives, while the SEC is keeping its eye on the markets.
