Embarrassed after missing the warning signs of the financial crisis and the Ponzi scheme of Bernard L. Madoff, the agency’s enforcement division has adopted several new — if somewhat unconventional — strategies to restore its credibility. The S.E.C. is taking its cue from criminal authorities, studying statistical formulas to trace connections, creating a powerful unit to cull tips and assign cases and even striking a deal with the Federal Bureau of Investigation to have agents embedded with the regulator.
“We were given a once-in-a-lifetime opportunity to rethink what we do and how we do it,” said Robert Khuzami, the agency’s enforcement chief since 2009….
via With New Firepower, S.E.C. Tracks Bigger Game — DealBook