On 2 October 2024, the U.S. Securities and Exchange Commission (US SEC) announced the resignation of Gurbir S. Grewal, Director of the Division of Enforcement, effective 11 October 2024. Following Mr. Grewal’s departure, Sanjay Wadhwa, the current Deputy Director of Enforcement, will assume the role of Acting Director, while Sam Waldon, Chief Counsel of the Division, will become Acting Deputy Director.
Mr. Grewal joined the U.S. SEC in July 2021 and oversaw the Division of Enforcement through a period of active regulatory enforcement. During his tenure, he emphasised the importance of ensuring that remedies, penalties, and enforcement actions provided a deterrent effect for non-compliance. Under his leadership, the Division focused on matters such as compliance with registration provisions, whistleblower protections, and addressing deficiencies in recordkeeping across various sectors.
Mr. Grewal, before joining the U.S. SEC, served as Attorney General for the State of New Jersey and has extensive experience in law enforcement and legal practice, including roles as a U.S. Attorney and Bergen County Prosecutor. His departure will conclude his three-year service at the agency.
During his time as Director, the Enforcement Division pursued over 2,400 enforcement actions, resulting in orders of over US $20 billion in penalties, disgorgements, and funds returned to investors. Notable enforcement actions under his leadership targeted sectors including cryptocurrency markets, insider trading, and gatekeeper failures within the financial industry. The U.S. SEC brought forward numerous cases where firms failed to comply with federal securities laws, particularly in the areas of disclosure and recordkeeping.
The Division also addressed regulatory non-compliance within the cryptocurrency sector, bringing more than 100 enforcement actions against firms that failed to register with the U.S. SEC, depriving investors of required protections under federal securities laws. These actions involved penalties against some of the largest crypto asset platforms for operating without proper registration. Additionally, the Division focused on ensuring compliance in the private funds sector, addressing issues related to conflicts of interest, misrepresentation, and inadequate disclosures.
The announcement by US SEC further discussed Mr. Grewal’s efforts to enhance compliance within the financial sector, particularly through encouraging firms to self-report and remediate identified issues. These measures were aimed at fostering a more robust compliance culture within regulated entities.
Sanjay Wadhwa, who will now serve as Acting Director, has over 21 years of experience at the U.S. SEC, working closely with Mr. Grewal during his time as Deputy Director. Mr. Wadhwa has led significant investigations during his tenure, focusing on insider trading, market manipulation, and institutional non-compliance. His background includes key roles in prominent enforcement actions, including those related to hedge fund misconduct and institutional trading violations.
Sam Waldon, the new Acting Deputy Director, joined the Division of Enforcement as Chief Counsel in 2022. Before joining the U.S. SEC, Mr. Waldon worked in private practice and also served as Assistant Chief Counsel for the Enforcement Division from 2010 to 2018. His experience includes advising on legal matters involving enforcement and regulatory compliance.
(Source: https://www.sec.gov/newsroom/press-releases/2024-162)
