The Securities and Exchange Commission’s enforcement director is leaving at the end of the year following four years of significant municipal cases.
The SEC announced Stephanie Avakian’s pending departure Thursday after her four years leading the Enforcement Division as co-director and then director.
Under her leadership, the Enforcement Division recommended and the Commission brought more than 3,000 enforcement actions.
At her top post, Avakian oversaw a wide range of enforcement cases, including public finance.
As co-director of the Enforcement Division, Avakian oversaw charges the SEC made against municipal bond “flipping” schemes. There were multiple cases brought against firms and individuals since 2018 for posing as retail investors to gain priority access to new-issue municipals. The bonds were then “flipped” for profit to their customers as well as the customers of other broker-dealers.
Avakian was also co-director when the SEC brought charges against municipal advisor Comer Capital Group LLC and its managing partner, Brandon Comer, alleging that they failed to protect their client.
“I am incredibly proud of what the women and men of the Division of Enforcement have accomplished under Stephanie’s leadership,” said SEC Chair Jay Clayton. “Her focus on the vigorous pursuit of quality cases, using the recourses of the Division to maximum effect has resulted in a program that is tough on violators, enhances the integrity of our markets, and puts the interests of our Main Street investors first. Stephanie’s leadership skills are unparalleled.”
Clayton is also leaving at the end of the year. Enforcement Co-Director Steven Peikin left in August 2020. Top-tier career moves are due to changes in administration as President-elect Joe Biden takes office in January, sources say.
“You’re going to see a changeover in the top leadership at the SEC with the change in administration,” a securities lawyer said.
brought against firms and individuals since 2018 for posing as retail investors to gain priority access to new-issue municipals. The bonds were then “flipped” for profit to their customers as well as the customers of other broker-dealers.
During Avakian's time at the SEC, she looked for ways to improve the division’s effectiveness and efficiency, resulting in a decline in the average duration of cases over the most recent fiscal year.
"The pace of the investigations increased in fiscal 2020,” according to the SEC’s Division of Enforcement 2020 Report. “The median time to file an enforcement action was 21.6 months, a five-year best, the SEC said. The SEC also reduced the average amount of time it takes to complete investigations from 37 months to 34 months.”
Avakian was co-director of enforcement from June 2017 to August 2020 and acting director from December 2016 to June 2017. Avakian was a partner at Wilmer Cutler Pickering Hale and Dorr LLP. She received her bachelor’s degree from the College of New Jersey and law degree from Temple University.
The next SEC chair will name the next director of enforcement. After Clayton leaves, sources say Commissioner Hester Peirce will take his place until Biden picks the next chair.
Deputy Director Marc Berger will serve as acting director after Akakian leaves. Berger was a former federal prosecutor and became Assistant U.S. Attorney in the Southern District of New York in 2002. He received his bachelor’s degree from Cornell University in 1996 and earned his law degree from the University of Virginia in 1999.
