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SEC chairman names new director of enforcement

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] US Securities and Exchange Commission (SEC) chairman Mary Schapiro on Thursday named Robert Khuzami as the new director of the SEC's Division of Enforcement. Khuzmani replaces former director of enforcement Linda Thomsen, who stepped down from the position last week. Khuzami has previously served as a federal prosecutor in the US Attorney's Office for the Southern District of New York, and as General Counsel for the Americas for the international investment bank Deutsche Bank AG. In a statement, Schapiro said:I'm pleased to have Rob join the SEC in such an important role at this crucial time. ... As we work to improve investor confidence in the markets, our enforcement efforts are vital. Throughout his career, Rob has demonstrated an unwavering commitment to prosecuting wrongdoers and protecting citizens. As a former federal prosecutor, Rob is well-suited to lead the SEC's Division of Enforcement as we continue to crack down on those who would betray the trust of investors.As a federal prosecutor in the Southern District of New York, Khuzami prosecuted a number of financial crimes, and also assisted in the conviction of Omar Abdel-Rahman in connection with the 1993 World Trade Center bombing. Khuzami's appointment as head of the SEC's enforcement division comes as the agency has been rocked by heavy criticism for apparently lax enforcement in the wake of the alleged Ponzi scheme perpetrated by disgraced Wall Street investor Bernard Madoff, who faces criminal charges brought by the SEC. Similar charges were filed by the SEC against Allen Stanford earlier this week. In the week following Madoff's charges, then-SEC chairman Christopher Cox said that he would launch an immediate investigation into how the fraud allegedly perpetrated by Madoff went undetected for so long. In December, then-President-elect Barack Obama named Schapiro as the SEC Chairman, replacing Cox. Madoff was charged with securities fraud in December for allegedly violating the anti-fraud provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. UK financial firm Bramdean Alternatives Limited raised concerns about the US financial regulatory process after its value dropped by more than 35 percent following news of its exposure to the fraud.

Full post as published by JURIST - The Paper Chase on February 20, 2009 (boomark / email).