Sen. Grassley Tells SEC To "Refocus," Questions Its Efficacy

Sen. Grassley Tells SEC To “Refocus,” Questions Its Efficacy

by Beth Connolly on May 18, 2012

The Securities and Exchange commission recently launched an investigation into former lead inspector general David Kotz. It also placed staffer David Weber, who filed the complaints against Kotz, on administrative leave because of security threats. U.S. Senator Charles Grassley isn’t buying it, Reuters reports.

“The recent turmoil at the SEC inspector general’s office raises questions about how well that office is functioning,” Grassley said in a statement on Wednesday. “Information from all sides is necessary to try to establish where things went wrong and what the agency can do to refocus its watchdog capacity.”

In other words, stop the distractions, and get down to business.

The complaint against Kotz alleged that sexual misconduct during his time at the SEC had hindered major investigations.

The complaints against Weber alleged that he expressed a desire to carry a concealed firearm and wear a bulletproof vest at work.

Grassley raised concerns about the involvement of outside security company, AT-RISK International, which is investigating the complaints against David Weber, saying that the company was being investigated by the SEC’s inspector general’s office at the same time that it was evaluating Weber.

David Kotz has commented that his term at the SEC was blemish free, and that he is no longer liable because he is now a private citizen.

David Weber’s attorney pointed to the chronology of events in Weber’s case, saying that the SEC’s decision to place him on leave was a form of retaliation.

And that’s it for this week on As The SEC Turns. Check back next week for more drama.

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Beth Connolly is Editor-in-Chief of the Wall Street Job Report and the Compliance Exchange. She blogs creatively at When Nutmeg Met Basil. Connect with her on LinkedIn , Twitter, and About.Me.