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August 17, 2018 at 05:45 PM
The head of the New York attorney general’s investor protection bureau Katherine Milgram is leaving to take a position as head of regulatory affairs and chief of staff to the chief legal counsel at Guardian Life Insurance Co., according to the attorney general’s office.
Milgram, who has been the head of the bureau since February 2016, will be succeeded by chief of the enforcement section, Cynthia Hanawalt, according to the office. The bureau is responsible for enforcement under New York’s Martin Act, a powerful securities anti-fraud law that gives the attorney general’s office broad law enforcement powers.
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“It was an honor to lead [the] Investor Protection Bureau, and I am proud of the work my team and I did to protect New Yorkers and all investors over the past five years,” Milgram said in a statement. “I am thrilled to be joining Guardian, a mutual company driven by strong values and with a long history of demonstrating an impressive commitment to its policyholders and customers.”
During her time leading the bureau, which includes her time as deputy chief two years prior, Milgram oversaw numerous high-profile actions against some of the biggest financial companies in the world. She also worked to reinvigorate what she has described as the core responsibility of the bureau: protecting Main Street investors.
In March, the bureau’s efforts led Bank of America Merrill Lynch to a $42 million penalty with New York sate to settle allegations of fraudulent electronic services practices conducted by the bank’s investment arm. The record-breaking amount came after the firm’s “masking” practices were investigated under the Martin Act.
Milgram also oversaw the state’s investigation into Deutsche Bank’s electronic equities order routing services, known as its “Dark Pool Ranking Model.” The bank allegedly did not inform its clients that the system was not working properly when it was discovered, resulting in a pair of settlements with the attorney general’s office and the federal Securities and Exchange Commission that added up to $37 million.
