Khuzami Testimony: "Mortgage Fraud, Securities Fraud and the Financial Meltdown: Prosecuting Those Responsible."
On December 9, 2009, the Director of the SEC’s Division of Enforcement, Robert Khuzami, testified before Senate Judiciary Committee at a hearing entitled “Mortgage Fraud, Securities Fraud and the Financial Meltdown: Prosecuting Those Responsible.” Khuzami’s testimony detailed five primary areas in which the SEC is focusing its enforcement efforts.
First, the SEC is investigating and pursuing enforcement cases based on unlawful conduct related to the financial crisis. Second, the SEC is enhancing its working relationship with other law enforcement authorities, including the DOJ. Third, the SEC is implementing several reorganization initiatives, including the creation of specialized units within the Division of Enforcement that are aimed at attacking both the causes of the recent financial crisis, as well as current and future market practices that are a potential cause for concern for the SEC. Fourth, the SEC’s staff is proposing various legislative reforms, including nationwide service of process, a whistleblower program and enhanced access to grand jury material. Last, the SEC is seeking additional resources for both the Enforcement Division and throughout the SEC.
A transcript of Khuzami’s testimony is available here.
