The SEC New York office plans to hire 18 people on the enforcement side, where it currently employs about 150 people, and add 15 people to its examinations staff, which currently numbers about 210 in New York. The push to hire more lawyers, accountants and even former traders comes at a time that the agency is seeking to become more aggressive in going after firms and individuals on Wall Street.
Heavily criticized over failing to stop Madoff's estimated $65 billion Ponzi scheme, the agency last year began hiring outsiders with prosecutorial experience. They have created a number of specialist units with expertise in investment advisers, investment companies, hedge funds and private equity funds. The SEC has also authorized its staff to use cooperation, deferred prosecution, and non-prosecution agreements, which have long been in use by the U.S. Department of Justice The SEC director of enforcement Robert Khuzami expects that this step will further facilitate swift and comprehensive steps against securities fraud as it unfolds, thus better protecting investors. One aspect is that the SEC will be able to more easily pursue a company and its high-level officers by entering into these agreements with lower level employees.