Statement Summary
The SEC’s Enforcement Division, under new leadership, is refocusing on its core mission of investor protection and market integrity. In a recent address, the Director highlighted ongoing initiatives aimed at enhancing enforcement quality over quantity, emphasizing accountability for individual wrongdoers and swift actions against fraud, insider trading, and compliance failures. The SEC has launched specialized units to combat financial reporting fraud and retail fraud, leveraging technology and inter-agency coordination to improve efficiency. The Division aims for increased visibility in enforcement actions to instill market confidence and deter misconduct. It is committed to transparency and collaboration with defense counsel to streamline investigations, ensuring a proactive approach in addressing securities law violations.
Original Statement
[As Prepared] Good morning and thank you for the warm welcome. It’s always a pleasure to be back in Texas, and I’m grateful to my law school alma mater, the University of Texas, for hosting this event and for inviting me to speak today. This institute in particular has long been an important forum for defense counsel, in‑house lawyers, compliance professionals, law enforcement personnel, and advisors who shape how our enforcement system functions in practice.
Before I begin, allow me to share the standard disclaimer: I am speaking today in my official capacity as Director of the Division of Enforcement. My remarks represent my own views and do not necessarily reflect the views of the Commission, the Commissioners, or my colleagues on the staff.
Today, I want to provide a clear update on the SEC’s Enforcement Division, outline a few new initiatives that strengthen our enforcement program, and deliver some direct messages about what defense counsel should expect from us going forward.
Enforcement Division Overview
The Enforcement Division has a more than 50-year history of professionalism, rigor, and effectiveness. The Division’s staff are talented, highly-professional, mission‑driven, and deeply committed to protecting investors, upholding market integrity, and ensuring accountability. And it is a privilege to lead such a dedicated group.
In my first three months on the job, I visited all 10 of our regional offices and met with every Specialized Unit and Associate Group. I enjoyed meeting with staff across the country, and, during those meetings, I made clear that my goal as Director of the Enforcement Division is aligned to that of Chairman Atkins: to refocus the enforcement program squarely on our mission and get back to basics. We are well underway.
Prioritizing Quality Over Quantity
Indeed, in the last several months the Commission has brought a number of cases confirming that we’re prioritizing back to basics cases—cases focusing on conduct that harms investors, holding individual wrongdoers accountable, and pursuing opportunities to return money to harmed investors. And that is what you can expect from the Division going forward—we will aggressively pursue fraud, insider trading, accounting fraud, compliance failures, investment adviser conflicts and misrepresentations, and more.
Some outside observers keep a close watch on certain numbers associated with our enforcement program, for example the number of cases the Commission files or the amount of monetary remedies it obtains in those cases. But Chairman Atkins has been clear: the past approach of assessing the effectiveness of enforcement by the numbers, not the quality, of cases brought is flawed. I share the Chairman’s view.
Visible Enforcement Actions
As former SEC Chairman Harvey Pitt noted, “an essential predicate for any effective enforcement program is visibility.” The market must see—and feel—that Enforcement is on the job and market participants need to understand that if they violate the securities laws, they will suffer the consequences. We want bad actors to know that Enforcement is committed to detecting and shutting down their misconduct, holding them accountable, and putting appropriate measures in place to prevent them from continuing to violate the law.
A number of recent matters highlight a visible Enforcement Division bringing impactful cases in response to a spectrum of misconduct. Counteracting “bread-and butter” offering frauds—especially those that generate significant retail harm—remains foundational to our mission, even as market structures and products evolve.
New Initiatives and Coordination Efforts
The newly-launched Financial Reporting and Accounting Unit expands on the Division’s efforts to crack down on bad actors in the accounting and auditing professions. As investors gain access to new markets and expanded investment options, our responsibility to ensure strong financial reporting and accurate disclosure is more essential than ever.
We have also undertaken new initiatives that will further the visible, disciplined, and efficient program we are building. The Retail Fraud Working Group will bring focused energy and resources from across the Division to pursue retail fraud—using data, technology, and intelligence-sharing.
We are also examining ways to force multiply through creative uses of technology and through increased interagency coordination. The Division has a new Office of Artificial Intelligence & Analytics, which is focusing on accelerating our practical implementation of Artificial Intelligence and Analytics.
Messages to Defense Counsel
First, the staff is paying close attention to 8-Ks, media reports, TCRs, and myriad other sources. So, it’s better if you come to us first, because you will get a call from us. A company that self-reports, cooperates fully, and remediates will not be treated the same as a company that conceals, delays, or obstructs.
Let me be clear: we will move matters forward—with or without delay attempts from counsel. We will have little patience for defense counsel slow rolling productions, making excuses for missing production deadlines, and, in extreme cases, refusing to produce documents.
Conclusion
To close, I am pleased to report that the Division is strong, disciplined, and deeply committed to protecting investors. Our staff is exceptional, our priorities are clear, and our enforcement program reflects a return to basics—robust investor protection, visible enforcement, moving matters efficiently, and providing clarity for market participants.
Fiscal year 2026 was a transitionary period, but transitions strengthen disciplined programs. We have recalibrated our pipeline, launched critical initiatives, and re-established core principles. I am honored to lead the Enforcement Division forward and I am excited about what’s to come.
Thank you for your time.
