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
Khuzami will go down in history as the best (even eclipsing Tom’s father, Stan) director of SEC enforcement. Stan’s the only competition he has, however. Not too hard to eclipse Thomsen or Cutler (possibly the worst the SEC ever had).