SEC Enforcement Director Grewal to Step Down After Three-Year Tenure

The Securities and Exchange Commission announced today that Gurbir S. Grewal, Director of the Division of Enforcement, will leave his position effective October 11, 2024. Sanjay Wadhwa, the division's current Deputy Director, will take over as Acting Director, while Sam Waldon will serve as Acting Deputy Director.

During Grewal's three-year tenure, the SEC's enforcement division pursued more than 2,400 enforcement actions, securing over $20 billion in disgorgement, prejudgment interest, and civil penalties. The division also awarded more than $1 billion to whistleblowers and imposed over 340 industry bars against individuals.

SEC Chair Gary Gensler praised Grewal's leadership, noting that he "acted without fear or favor, following the facts and the law wherever they may lead."

Grewal's term was marked by several significant initiatives, including a major crackdown on cryptocurrency-related violations, with more than 100 enforcement actions in the crypto space. The division also launched a sweeping investigation into recordkeeping violations that resulted in over $2 billion in penalties against more than 100 firms for failures to properly maintain electronic communications.

Before joining the SEC, Grewal served as New Jersey's Attorney General from 2018 to 2021. His successor, Sanjay Wadhwa, brings over two decades of SEC experience to the role, including notable achievements in combating institutional insider trading cases involving major firms such as Galleon Management and S.A.C. Capital.

Under Grewal's leadership, the division prioritized stronger enforcement measures across various sectors, including:

• Enhanced scrutiny of private funds
• Aggressive pursuit of insider trading violations
• Strengthened oversight of market gatekeepers
• Increased focus on investor protection in emerging markets

The transition comes at a time when the SEC continues to face challenges in regulating rapidly evolving financial markets, particularly in the digital asset space and private fund sector.

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