In the aftermath of the Bernie Madoff Ponzi scheme, the SEC instituted a number of reforms, restructuring and procedure to better facilitate reporting, investigations and enforcement. The most important change to the structure is the creation of several national enforcement divisions.
The purpose of these divisions is twofold; to restore public confidence in the investigating powers of the SEC and to unify efforts at tracking suspicious patterns of fraudulent activity and violations of US securities law. These divisions include Market Abuse, Assets Management, Municipal Securities and Public Pensions, as well as a division that investigates violations of the Foreign Corrupt Practices Act.
This restructuring makes SEC investigations more efficient by targeting hiring of expert analysis and a centralization of enforcement efforts. Better surveillance and whistleblowing policy allow ensures that leads are adequately vetted, with proper consideration for the merits of a possible investigation. The failure to follow up on tips was a point of criticism against the SEC in the last decade after several financial scandals come to light.
The reorganization of the SEC has led to increased scrutiny for many financial entities. If you are under investigation by the SEC in New York, contact our New York white-collar criminal lawyers today at (212) 577-6677 for an immediate consultation.