BusinessBusiness SECSecurities And Exchange Commission

Robert Khuzami, Head Of SEC Enforcement Division, Announces Resignation

Wall St. Watchdog Loses Key Enforcer
Reuters
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WASHINGTON - DECEMBER 11: Securities and Exchange Commission's Division of Enforcement Director Robert Khuzami testifies before the House Oversight and Government Reform Committee about the purchase of Merrill Lynch by Bank of America December 11, 2009 in Washington, DC. Khuzami said the SEC may seek additional claims in its case against Bank of America Corp. after a judge rejected a $33 million settlement over its purchase of Merrill Lynch. Khuzami also revealed that the SEC is investigating the bank's failure to disclose to shareholders Merrill Lynch's mounting losses in the fourth quarter of 2008. (Photo by Chip Somodevilla/Getty Images)

WASHINGTON (Reuters) - Robert Khuzami, the head of the U.S. Securities and Exchange Commission's enforcement division, plans to step down as early as next month, Bloomberg reported on Thursday.

Khuzami notified SEC Chairman Elisse Walter of his decision earlier this month, according to Bloomberg, which cited three people with knowledge of the matter.

Khuzami, a former federal prosecutor and bank executive, came to the SEC in 2009 to help reshape the agency's enforcement efforts amid criticism that it missed the $65 billion Bernard Madoff Ponzi scheme and other major frauds.

In his tenure with the agency, Khuzami oversaw efforts to pursue financial institutions that contributed to the subprime mortgage crisis.

SEC spokesman John Nester declined comment. Khuzami did not immediately respond to a request for comment.

(Reporting By Aruna Viswanatha and Sarah N. Lynch; Editing by Gary Hill)

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Before You Go

Economic Conspiracy Theorists
Jack Welch(01 of08)
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Jack Welch, former CEO of General Electric, tweeted on Friday that President Obama's team must have cooked the September jobs numbers in order to help his reelection chances. But these claims are baseless: The Bureau of Labor Statistics is an independent agency that conducts scientific random surveys. (credit:Getty Images)
Rush Limbaugh On Jobs Report(02 of08)
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Long before Jack Welch accused the Bureau of Labor Statistics of cooking its books to help President Obama on Oct. 5, conservative talk show host Rush Limbaugh claimed in February that the Bureau of Labor Statistics' seasonal adjustment of the jobs numbers amounted to cooking the books to help President Obama. He said that "the raw number" from December to January meant "we lost two million jobs." But economists agree that seasonal adjustment is critical for month-to-month measurements, since there are seasonal factors that add noise to the data otherwise. (Hat tip: Business Insider.) (credit:AP)
Donald Trump(03 of08)
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Real estate mogul Donald Trump told CNBC in September that the Federal Reserve is "creating phony numbers and they're doing it through stimulus." The Fed has bought securities in its three rounds of quantitative easing, which many economists argued has had a real effect on the economy. (credit:AP)
Karl Rove(04 of08)
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Republican political strategist Karl Rove and Fox News host Bill O'Reilly said in December 2008 that journalists exaggerated the economic crisis then so that anything under President Obama would be an improvement. But the economy really was in a deep recession at the time. (credit:AP)
Erin Burnett ON Fed Stimulus(05 of08)
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CNN anchor Erin Burnett said on her show "Erin Burnett OutFront" on Aug. 31 that Federal Reserve Chairman Ben Bernanke may embark on another round of quantitative easing, a type of monetary stimulus, in order to help Obama get reelected and keep his own job. But the Federal Open Market Committee (FOMC) is independent and makes its monetary policy decisions based on how the economy is doing. Also, Bernanke is a registered Republican and was appointed by George W. Bush. (credit:Getty Images)
Rush Limbaugh On Financial Crisis(06 of08)
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Conservative talk show host Rush Limbaugh claimed in December 2008 that President Obama helped cause the financial crisis so that he could gain power. (Hat tip: Business Insider.) (credit:AP)
Ron Paul(07 of08)
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Rep. Ron Paul (R-Tex.), who believes America should abolish the Federal Reserve and go back to the gold standard, said in 2010 that the New York Fed might not have any gold in its vaults, according to The Motley Fool. Actually, it does. (credit:AP)
Erin Burnett On Food And Gas Prices(08 of08)
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CNN anchor Erin Burnett claimed on her show "Erin Burnett OutFront" in September that the Federal Reserve's stimulus measures have caused food and gas prices to rise. But there has been no correlation between the two. (credit:AP)
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