Robert Khuzami, director of the Securities and Exchange Commission’s Division of Enforcement, says his division’s Asset Management Unit is cracking down on investment advisors who lie about their credentials.
“We are reviewing registration documents for high-risk investment advisors to determine who is lying about their educational achievements, their business affiliations, and their assets under management,” Khuzami (left) told attendees at the Consumer Federation of America’s financial services conference on Dec. 1.
The enforcement unit’s crackdown–part of new initiatives being undertaken by his division–Khuzami said, is akin to “the crime-fighting approach championed by Rudy Giuliani in 1990s New York–if you stop people when they commit small infractions, they are less likely to graduate to bigger ones.”