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Thomsen Out At SEC, As New Chair Fills Out Team

The changes at the SEC continuing apace.

Days after the agency was excoriated by whistleblower Harry Markopolos, and by lawmakers, for failing to catch Bernie Madoff's alleged $50 billion Ponzi scheme, CNBC reports that enforcement director Linda Thomsen -- whose department came in for perhaps the most criticism over Madoff, will likely announce her departure today.

And several outlets have reported, starting over the weekend, that Thomsen's replacement will be Robert Khuzami, a former federal prosecutor who's now Deutsche Bank's top lawyer.

During Thomsen's tenure, the SEC has, by many accounts, devoted fewer resources to enforcement, and made it more difficult for investigators to obtain subpoenas -- changes led in large part by former chair Chris Cox.

As for Khuzami, he's a Republican who spoke at the 2004 GOP Convention in support of the Patriot Act and President Bush's policies in the war on terror. But as a prosecutor, he successfully oversaw some high-profile cases. He was part of the team that got convictions of a blind Egyptian cleric and nine others for a failed plot to blow up New York City landmarks. And, crucially, he led the team that won a conviction on the largest previous known Ponzi scheme, in which Patrick Bennett bilked investors out of $700 million. In 1997, the Clinton Justice Department gave Khuzami its highest citation, the Attorney General's Award for Exceptional Service.

In addition, on Friday the new SEC chair, Mary Schapiro, named David Becker, a partner at Cleary Gottlieb, as the agency's top lawyer. Becker held the same position from 2000 to 2002.

So the names on the doors of senior officials are certainly changing. Whether that improves the agency's regulatory performance, of course, remains to be seen. But the old crew was hardly inspiring confidence.



3 Comments

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Okay first item on the to do list is find out who within the SEC willfully ignored the Markopolos findings and why - Could there have been some sort of quid pro quo with an employee at SEC that allowed Madoff to continue this monumental rip off?
And Bernie's gotta be very nervous about the "Boys from Brighton's Beach" he ripped off- them Russki mafia types are supposed to make Tony Soprano look like an upstanding citizen -And girl friend would you want to be Bernie when the Medellin/Mexacali Cartel come looking for their 'Ponzi'ed " drug money .
Mr Markopolos ,stated in the clear at the hearing, directly to the gangsters "That hey Mr Mobster I was the good guy here- I was trying to keep Bernie from zeroing out your accounts "
Sheesh its going to take a very long time to clean up D.C from the last eight years of gwb 43.

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"As for Khuzami, he's a Republican who spoke at the 2004 GOP Convention in support of the Patriot Act and President Bush's policies in the war on terror" Deutsche Bank. My god.

Beyond belief. The fix is in... again.

I'm now thinking nothing but nothing will change until there are rampaging mobs in the street.

user-pic

Confound it ..confound them all read the rest of the quote ,, Khuzami also is a successful prosecutor - lets give Team Obama a chance to do good

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