U.S. SEC names new leaders in enforcement division
WASHINGTON, June 3 (Reuters) - The U.S. Securities and Exchange Commission announced two new deputy enforcement directors on Tuesday, bolstering the division's management as it grapples with subprime mortgage-related fraud and continues to crack down on insider trading.
Scott Friestad, an associate director in the enforcement division and George Curtis, regional director of the SEC's Denver office, were named to the posts.
They will join enforcement director Linda Thomsen and enforcement division chief counsel Joan McKown in managing the division.
SEC Chairman Christopher Cox said the enforcement division is putting a special focus on subprime-related investigations, as well as illegal hedge fund activity and insider trading.
"We endeavor to cover the waterfront," Cox told reporters after a briefing on the new deputies. "If men and women think of new ways to cheat investors, we want to make sure we're on the cutting edge."
Cox noted the enforcement division last year set the SEC's all-time record for corporate penalty cases and brought the second-highest number of enforcement actions in agency history.
During fiscal 2007, the SEC brought a total of 655 enforcement actions, including options backdating cases, securities fraud violations involving hedge funds and actions protecting seniors against fraud.
"We have many challenges ahead, but that's not new," Thomsen said at the briefing.
The new deputy directors replace Walter Ricciardi, who announced on Monday that he was leaving the agency for private practice, and Peter Bresnan, who left the SEC for private practice in January.
Friestad has been with the SEC since 1995 and recently helped lead SEC efforts in bringing one of that largest insider trading cases that charged 14 Wall Street individuals and entities for trading on non-public information from UBS AG (UBSN.VX) and Morgan Stanley (MS.N).
Curtis joined the SEC in 2006 after 30 years in private practice. Under his leadership, the Denver office brought 49 commission-approved enforcement actions during the past year. (Editing by Andre Grenon)
