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Following the SEC’s failure to detect Bernard Madoff’s fraud, the SEC named Robert Khuzami enforcement director and has begun cracking down on structured instruments through
“There’s been a lot of soul-searching within the enforcement division and the agency about what is the best way to identify and catch misconduct as early as possible,” Robert Kaplan, co-chief of the SEC hedge fund task force, told Bloomberg News. “Normally, law enforcement is inherently reactive.”
The SEC realizes that with a salary of only about $200,000, it will have a hard time recruiting a hedge fund manager at the top of their game and, thus, is hoping to find someone near retirement interested in public service.