SEC Names Five Investigative Chiefs

The Securities and Exchange Commission has appointed five individuals to specialize in various areas of investigation and has also created an Office of Market Intelligence to compile the hundreds of thousands of tips, complaints and referrals that the SEC receives each year.

The SEC hopes these actions will empower it to keep pace with ever-changing markets to more comprehensively investigate complex products, financial innovation, markets and regulatory regimes, as well as “the willingness of violators to use every trick to cover their tracks,” said Robert Khuzami, director of the division of enforcement.

Thomas A. Sporkin will head the new Office of Market Intelligence. He was previously senior counsel and staff attorney in the division of enforcement.

The chiefs of the five investigative units include Bruce Karpati and Robert B. Kaplan jointly overseeing the asset management unit, where they will handle investment advisors, investment companies, hedge funds and private equity funds. Karpati was founder and head of the SEC’s hedge fund working group and has served as assistant regional director for the New York regional office. Kaplan was assistant director of the division of enforcement. He previously held positions as assistant chief litigation counsel and senior counsel/staff attorney in the division of enforcement.

Daniel M. Hawke is now in charge of the market abuse investigative unit. He was previously director of the SEC’s Philadelphia regional office. His deputy chief is Sanjay Wadhwa, who was assistant regional director for the SEC’s New York regional office.

The structured and new products investigative unit, led by Kenneth R. Lench, will focus on complex derivatives and financial products, including credit default swaps, collateralized debt obligations and securitized products. He has held numerous titles in the division of enforcement, including branch chief. Lench’s deputy chief is Reid A. Muoio, who has been an assistant director, branch chief and staff attorney with the enforcement division.

Cheryl J. Scarboro is now in charge of monitoring foreign corrupt practices. She has served as associate director, assistant director, deputy assistant director and staff attorney in the division of enforcement. She also was counsel to former SEC Chairman Arthur Levitt, Jr.

The municipal securities and public pensions unit will be led by Elaine C. Greenberg, formerly associate regional director of the Philadelphia regional office. She was previously co-chair of the national municipal securities working group. Her deputy chief is Mark R. Zehner, formerly a regional municipal securities counsel in the Philadelphia regional office and co-chair of the municipal securities working group.