"Corporate penalties send the important deterrent message to managers and executives that their organizations will suffer financially and reputationally if they are not operated in a lawful manner." he said. "We also recognize that shareholders will indirectly absorb the cost of those penalties. So there is a balancing that occurs in these cases, one that we always engage in and will continue to engage in."
Khuzami has also led a renewed SEC crackdown on insider trading. The Galleon Management/Raj Rajaratnam investigation, for example, resulted in charges against 29 defendants including former McKinsey & Co. global head Rajat Gupta.
I have spent half my career in public service, and nowhere is there the level of professionalism, skill, and talent on such a large and coordinated scale as there is in the SECs Division of Enforcement, Khuzami said in a news release announcing his departure. "They have inspired me, educated me, and motivated me to do my very best, and for that I am eternally grateful."
Khuzami had been mentioned as potential candidate to serve as the next chairman of the SEC. His replacement as head of the Enforcement Division has not been named.
This article originally appeared as a post on The BLT: The Blog of LegalTimes.