New SEC top enforcer: Khuzami

Former Deutsche Bank general counsel and federal prosecutor Robert Khuzami today was named director of enforcement at the SEC.
FEB 19, 2009
Former Deutsche Bank general counsel and federal prosecutor Robert Khuzami today was named director of enforcement at the Securities and Exchange Commission. Mr. Khuzami replaces Linda Thomsen, who left the SEC Feb. 9 . Ms. Thomsen’s unit came under fire for failing to detect the alleged $50 billion fraud at Bernard L. Madoff Securities LLC of New York and for inadequately overseeing the mortgage-backed securities market that led to the credit crisis. Mr. Khuzami was a federal prosecutor for 11 years with the U.S. attorney’s office in New York, where he was chief of the office of securities and commodities fraud task force for three years. He prosecuted numerous complex securities and white-collar criminal matters, including cases involving insider trading, Ponzi schemes, accounting and financial statement fraud, organized crime infiltration of the securities markets, and initial public offering and investment adviser fraud, according to a SEC release. Most recently, he was general counsel for the Americas in the New York office of Deutsche Bank AG, which is headquartered in Frankfurt, Germany. Mr. Khuzami is the first major hire by SEC Chairman Mary Schapiro, who took her post in January. “I’m pleased to have Rob join the SEC in such an important role at this crucial time,” she said in the release. “As a former federal prosecutor, Rob is well-suited to lead the SEC’s division of enforcement as we continue to crack down on those who would betray the trust of investors,” Ms. Schapiro said. “I will relentlessly pursue and bring to justice those whose misconduct infects our markets, corrodes investor confidence and has caused so much financial suffering,” Mr. Khuzami added. In addition to prosecuting financial fraud cases, Mr. Khuzami successfully prosecuted “Blind Sheik” Omar Abdel Rahman for, among other things, plotting to blow up New York landmarks. At the time, it was the largest terrorism trial in U.S. history.

Latest News

Ameriprise, advisor on the hook to pay Edward Jones $4.7 million in trade secrets lawsuit.
Ameriprise, advisor on the hook to pay Edward Jones $4.7 million in trade secrets lawsuit.

In a constant fight over control of clients, the financial advice industry has a long history of such allegations and disputes.

Powering retirement for Wall Street
Powering retirement for Wall Street

Retirement fintech Vestwell has hit profitability and $200 million in annual recurring revenue, powering savings programs for 750,000 employers and Wall Street’s biggest firms

Advisor moves: LPL welcomes back RayJay advisor trio in Texas
Advisor moves: LPL welcomes back RayJay advisor trio in Texas

Meanwhile, &Partners has drawn another Wells Fargo team based in Missouri, while an experienced South Carolina advisor has returned to Cetera from LPL.

FINRA fines Vanguard $950,000 over decade of cost basis errors
FINRA fines Vanguard $950,000 over decade of cost basis errors

Faulty Forms 1099 and account statements reportedly left some Vanguard brokerage customers overpaying or underpaying taxes for over a decade.

More ETFs, more opportunity, more homework
More ETFs, more opportunity, more homework

The democratization of ETFs cuts both ways

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains