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FBN’s Peter Barnes with Rob Khuzami, former SEC head of enforcement, on his time at the SEC and the commission’s focus on insider trading and dark...
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You with our -- aren't -- Peter.
Taylor that's right actually rockers Tommy joins us now any standing for this particular interview I'm not rob thanks for joining.
Fox business for this exit interview.
You were brought in after the Bernie Madoff scandal which the SEC met -- Four years later.
-- the SEC.
Will the FCC catch the next Bernie Madoff.
Well I think the answer that as a resounding yes -- the agency has increased its expertise its use of data.
Comments specialized focus and a whole bunch of other new initiatives that make us just better equipped to be -- -- watch dog meat effective enforcement authorities.
But there may be made us out there and Allen Stanford's out there whom may slip through cracks certain -- commitment that you're net may not.
Catch is that fair to say.
Well there's always -- risk come that -- wrongdoing on the -- wrongdoing going on that you don't catch as early as you would like to but we are much better position to do so today we have.
Private sector experts across the agency who are steeped in the products and markets in transactions.
A Wall Street and financial transactions we have specialized units were focused on these areas we've reduced process.
Com we have better techniques so on all we are well positioned going forward in future.
As you know since you announced your every resident -- departure and he's not retiring from from the practice of law since -- -- your departure earlier this month your critics have been coming out of the woodwork John Coffee.
Professor of law professor at Columbia University Dennis Kelleher -- markets and they say.
Rob -- army and the SEC enforcement division under his watch were not tough enough.
I'm catching the bad guys what do you -- of that.
-- it's just not true in the think the number of folks who support our efforts and recognize what we accomplished.
Significantly outnumber the critics but speaking to the critics.
But we have charged over -- 150 individuals and -- -- and financial crisis cases.
Nearly seventy CE o.s CFOs and other high ranking corporate officers.
How we've -- large number of individuals so.
And -- financial crisis cases we've been the most vigorous enforcement authority out there and it's a very.
Very real record of accomplish.
But what -- critics again say that you tended to file cases that for example.
Focused on non disclosure rather than.
Fraud at that she went after firms not individuals when you went after individuals they were small fry not the big folks and that he settled for.
Much less then you could have been -- some of these companies some of these players.
With a large profits what about those.
Well all pretty much incorrect I would say look we charge nearly.
Com ninety individuals and these credit crisis cases far more than any other authority.
We've mitigated most of these file them unsettled which means we're prepared to go to court and fight if we don't yet.
The kind of resolution that we demand.
-- the amounts of penalties that we've gotten have been very significant over to -- thought 2.3 billion dollars.
But let's also keep in mind that there are some legal limits on the amounts of damages that the SEC can collect in its enforcement cases which is why we've asked congress for some expanded authority so.
Tom -- people are free to comment on however they they choose and we listened to all that but I think if you look at the record.
The record of accomplish.
There Mott street is this watching.
SAC capital Stevie Cohen no one of the largest hedge fund managers out there.
Eaten the company and he reportedly disclosed that it was good for the firm received -- wells notice from the SEC which means it could be sued.
Four.
Securities laws violations.
Is that true.
Obama.
I'm not gonna comment on -- investigation but as you bring up insider trading I would also note over a 160 cases in the last three years nearly 900 million dollars in.
-- illegal gains or losses avoided that we have charge so another area where we have been extremely vigorous and active.
How many insider trading cases are currently in the pipeline are there dozens more that you're looking into is that fair to sex.
I don't put a number -- -- her remains a high priority -- -- area.
What about in high speed trading high frequency trading -- -- -- visited the SEC is concerned about that.
Are you looking into.
Any potential securities law violations.
With high speed trading or high frequency -- What we're looking at a number of sort of.
Actors and transactions in the market structure space we brought cases against dark pools.
We brought cases against exchanges including New York Stock Exchange for failure to have.
Compliance with the rules.
So it's an important area for us and a high priority area -- in fact we have a specialized unit dedicated exclusively.
To these kind of market abuse type activities what are you going to do next.
I haven't determined that yet now one thing I know I'll be doing is looking back on my four years -- With a great sense of pride.
And a great deal of thanks to the staff for the SEC for all the work that they've done that issue.
Yourself going back into the private sector for example are potentially going to a law firm -- Wall Street are you just -- just route you're really all the -- right now reviewing I'm reviewing the offers.
How does not mean they and better enforcement for the SEC for the U for a new in the last four years rob thanks for joining us up Fox Business sense and good luck to you thanks so much for -- --
