SEC Watchdog Clears Enforcement Chief in Citi Case

SEC Inspector General H. David Kotz said Robert Khuzami didn’t provide special favors when the SEC decided that it wouldn’t pursue civil-fraud charges against two Citigroup executives after a conversation with a defense lawyer representing Citi. The defense lawyer, Mark Pomerantz, was a colleague of Mr. Khuzami’s from a previous job in the U.S. District Attorneys’ Office in New York. The probe was prompted by an anonymous letter forwarded to Mr. Kotz by Sen. Charles Grassley (R., Iowa) that detailed the allegations.

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