SEC Will Work to Return Funds to Victims of Stock Fraud
Christopher Cox, the chairman of the Securities and Exchange Commission, said that he has ordered the creation of a new office that will return money lost by investors affected by stock fraud. Congress decided to allow the SEC in 2002 to distribute the fines ordered of those who defraud investors to victims. Cox says that the SEC will "very soon" distribute about $3.4 billion owed to investors.
Cox told lawmakers that the SEC office will work to return money to investors as quickly as possible. The SEC is working with the U.S. Treasury Department's Bureau of Public Debt to assure that the money it collects is invested in interest-bearing accounts while waiting for distribution.
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