Today, the SEC’s Division of Enforcement announced the appointment of six individuals to head the five recently created units covering highly specialized and complex areas of securities law. In addition, the Division of Enforcement announced the creation of a new Office of Market Intelligence that is tasked with analyzing tips according to internally-developed risk criteria as well as SEC priorities. This new office will be headed by Thomas A. Sporkin, a Deputy Chief in the Office of Internet Enforcement at the SEC since 2001.
The new units and their chiefs are:
- Asset Management - Led by Co-Chiefs Bruce Karpati and Robert B. Kaplan, will focus on investigations involving investment advisors, investment companies, hedge funds, and private equity funds.
- Foreign Corrupt Practices - Led by Cheryl J. Scarboro, will focus on violations of the Foreign Corrupt Practice Act, which prohibits U.S. companies from bribing foreign officials for government contracts and other business.
- Market Abuse - Led by Daniel M. Hawke, with Deputy Chief Sanjay Wadhwa, will focus on investigations involving large-scale market abuses and complex manipulation schemes by institutional traders, market professionals, and others.
- Municipal Securities and Public Pensions - Led by Elaine C. Greenberg, with Deputy Chief Mark R. Zehner, will focus on misconduct in the large municipal securities market and in connection with public pension funds including: offering and disclosure fraud; tax or arbitrage-driven fraud; pay-to-play and public corruption violations; public pension accounting and disclosure violations; and valuation and pricing fraud.
- Structured and New Products - Led by Kenneth R. Lench, with Deputy Chief Reid A. Muoio, will focus on complex derivatives and financial products, including credit default swaps, collateralized debt obligations, and securitized products.
In announcing the new positions, the SEC stated that the “units and the new office will help provide the additional structure, resources, and expertise necessary for enforcement staff to keep pace with ever-changing markets and more comprehensively investigate cases involving complex products, markets, regulatory regimes, practices and transactions.”