NLJ: Khuzami Provides Updates on Numerous Initiatives

khuzami230The National Law Journal has a lengthy profile today of SEC Enforcement Director Robert Khuzami. The article is excellent and worth reading in its entirety, but here are some of the most interesting bits of information:

  • The Enforcement Division presently has around 1,100 people division, includes about 640 lawyers.
  • Khuzami’s well-documented move toward specialization in the Division involves moving 10% to 20% of its staff into five new specialized units dedicated to specific areas of securities law.
  • The SEC receives approximately 700,000 tips and complaints, which will soon be handled by the new Office of Market Intelligence.
  • According to an analysis by law firm Gibson, Dunn & Crutcher, SEC lawyers brought 45% more enforcement actions in the first six months of 2009 compared to 2008, increasing to 167 cases from 114.
  • An initiative to lay out standards for rewarding people for cooperating with the SEC in investigations (a “Seaboard” for individuals) is almost finalized, and a policy statement will be published in the Federal Register in the near future.
  • Another initiative to eliminate the lowest level of supervisors, known as branch chiefs, is underway.  The NLJ reports that of the 115 branch chiefs, some are being assigned to work on front-line investigations, while others will be bumped up to the next supervisor level, assistant director.
  • Going forward, assistant directors will each in charge of about six staff attorneys.