Securities and Exchange Commission boss Mary Schapiro could be close to naming her new sheriff.
Robert Khuzami, a former federal prosecutor, is said to be at the top of Schapiro’s list to head the SEC’s embattled enforcement division, which has gotten a public flogging over the past few weeks in the wake of the alleged $50 billion Ponzi scheme hatched by Bernard Madoff.
As The Post first reported Friday, Schapiro has been on the prowl for someone with prosecutorial experience to replace current enforcement head Linda Thomsen, who’s been at the center of criticism that the agency ignored red flags that should have alerted them to Madoff’s alleged misdeeds.
Schapiro has been searching within the ranks of US attorneys’ offices across the country because those lawyers litigate cases on behalf of the US government under the direction of the US attorney general, sources told The Post.
Khuzami is the former head of white-collar crime for the US Attorney’s office in Manhattan. He’s currently a Wall Streeter, however, employed as general counsel with Deutche Bank.
Khuzami, who couldn’t be immediately reached for comment, may meet senior SEC officials as soon as next week, according to Bloomberg News, which first reported the news about Khuzami.
Sources tell The Post that Schapiro’s been under pressure to replace several members of the senior staff beyond Thomsen.
Lori Richards, director of the office of compliance inspections and examinations, has also been criticized in the Madoff scandal, as her division is responsible for inspecting broker-dealers and investment managers like Madoff’s firms.
Schapiro yesterday launched a series of initiatives to overhaul the agency, including killing a controversial program that required enforcement attorneys to get approval from commissioners before negotiating fines and other penalties with companies accused of securities violations.
“I like to tell the staff we are going to act like our hair is on fire,” she said in announcing the plan.
Schapiro also named David Becker, a partner at Cleary Gottlieb Steen & Hamilton in Washington, to become the SEC’s chief legal officer, replacing Andrew Vollmer, who had the role on an interim basis.