Robert Khuzami, the Securities and Exchange Commission’s
enforcement chief, is on his way out the door — but he says in an interview
with The Post that the agency’s much-maligned practice of settling cases is
here to stay. Khuzami, 56, defended the
SEC’s policy of allowing targets to settle cases — usually without an admission
of wrongdoing — despite recent criticism.
“There are certain myths about SEC practices, including how
‘neither admit nor deny’ works and why we use it,” said Khuzami, who is leaving
his post after heading the agency’s crackdown on big banks following the
financial crisis. “I speak out against
these myths in the hope of reducing the level of cynicism felt by the public,
which are often fueled by mischaracterizations or misunderstandings of how we
operate.”
The SEC’s well-worn route of levying fines instead of
hauling companies to court has come under fire, even as its settlement dollars
hit new highs in areas such as Ponzi schemes….
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