SEC Chairman Cox Announces Creation of New Office, Appointment of Leaders, to Expedite Distribution of Billions to Injured Investors

SEC, Feb 07, 2008

Securities and Exchange Commission Chairman Christopher Cox today announced the appointments of the top two leaders of the agency's newly created Office of Collections and Distributions.

Richard J. D'Anna, an experienced manager in the financial services industry, has joined the SEC as the first-ever director of the new office. Mr. D'Anna will use his considerable private sector experience in tracking and managing financial assets to expedite the distribution of more than $5 billion in SEC recoveries to injured investors.

At the same time, Lynn M. Powalski will become Deputy Director of the Office of Collections and Distributions. Ms. Powalski has been an Assistant Director and Assistant Chief Litigation Counsel for Collections and Distributions within the SEC's Division of Enforcement.

"The Commission's strong commitment to recovering money from wrongdoers and returning it to investors is amply demonstrated by the more than $2 billion we distributed last year," said Chairman Cox. "In 2008, we can do more. Dick and Lynn bring exactly the right skill-sets to their new positions, and they will make an excellent team to lead the SEC's efforts to get money back to defrauded investors as quickly and efficiently as possible."

The Sarbanes-Oxley Act passed by Congress in 2002 for the first time gave the SEC authority to distribute financial penalties paid by securities law violators directly to injured investors. Using this authority, the SEC already has distributed more than $3.5 billion. The new office is intended to further expedite the return of more than $5 billion in so-called Fair Funds to harmed investors, while cutting red tape and the costs of the distributions.

Mr. D'Anna said, "I am very excited to join the SEC in this capacity and look forward to working with the professional staff there to accomplish the important goals the Chairman has provided. I have every confidence we will be successful."

Ms. Powalski said, "I look forward to this new opportunity and to working with the Office's exceptional staff. We expect to build on the Commission's continued success in depriving securities law violators of illegally obtained funds and ensuring that the funds collected are returned to harmed investors as quickly as possible."