The breadth of rules that any SEC enforcement staff member potentially has to cover is truly staggering. The arcana of the Investment Management Division are quite different from the arcana of the Trading & Markets and Corporation Finance Divisions, but at different times the enforcement staff have to be conversant in all of it. A specialized unit devoted to financial fraud would become skilled at these cases. It would also create a base of lawyers who could take calls from other staff and with a fair degree of confidence be able to say, “Yes, I’ve seen this before. Here’s what you need to think about and do to make your case.” As it stands, it can be hard to know who to call to get those answers, and many SEC staff take fact patterns that are new to them and struggle alone to figure them out. I suspect a specialized unit for financial fraud would add a lot of efficiency to what can be tough cases to solve.
via Financial Fraud Specialists at the SEC — Cady Bar the Door