SEC Names Heads of New Investigative Units

The Securities and Exchange Commission has named six people to lead new investigative units as the agency reorganizes its enforcement efforts.

The SEC was scorched by its failure to detect the stunning 16-year fraud by money manager Bernard Madoff despite numerous red flags and credible warnings.

The new units and their leaders are: asset management, headed by Bruce Karpati and Robert Kaplan; market abuse, led by Daniel Hawke; structured and new products, Kenneth Lench; foreign corrupt practices, Cheryl Scarboro; and municipal securities and public pensions, Elaine Greenberg.

The enforcement division also announced Wednesday new measures designed to encourage companies and individuals to cooperate more closely in providing information