Division of Enforcement
The U.S. Securities and Exchange Commission (SEC) has named two new associate directors for its Division of Enforcement, according to a statement from the government organization.
Anita Bandy and Carolyn Welshans will assume their new positions effective immediately. Each will be responsible for supervising about 40 attorneys and other legal staff members in the course of their duties. The Division of Enforcement is responsible for investigating and prosecuting a wide range of securities law violations.
Bandy has served with the SEC since 2004. She has been the assistant director in the Division of Enforcement since 2013 and is credited with supervising dozens of investigations covering accounting fraud, marketing manipulation, offering fraud, and more. Prior to her service with the SEC, Bandy worked as a white-collar litigation associate at the law firm of Proskauer Rose LLP. She received her undergraduate degree from the University of Michigan in 1999 and completed her juris doctorate afterward at American University.
Welshans came to the SEC in 2007 and also served as an assistant director in the Division of Enforcement, heading up the Market Abuse Unit from 2015 to present. She also gained an assistant directorship in the division’s Cyber Unit when it was formally pulled together in 2017. Welshans’ investigation credits include insider trading, dark pools, and retail order handling. She previously served for four years with the law firm of Descert LLP. She received her undergraduate degree from the College of William and Mary in 2000 and her juris doctorate from Boston College Law School in 2003.
Bandy replaces outgoing associate director Gerald Hodgkins, and Welshans replaces Scott Friestad, who died in April.
“Anita and Carolyn are excellent mentors and have demonstrated leadership, technical expertise, and judgment in their approach to investigations,” SEC Chairman Jay Clayton said in the statement. “I am confident that American investors and our markets will be well-served by the elevation of these two dedicated public servants.”
SEC Division of Enforcement Co-Director Stephanie Avakian added that Bandy’s service with the SEC over the past decade “…has demonstrated a unique ability to identify emerging market risks and efficient marshal the division’s resources to address them.”
In the statement, fellow Division of Enforcement Co-Director Seven Peikin praised Welshans’ leadership abilities. “Carolyn has been a highly-regarded manager and an influential thought leader in the division as we have moved to confront novel challenges in the most complex corners of the market,” he said.
Bandy said in the statement that she feels privileged to take on additional responsibilities within the SEC. “My colleagues bring tremendous dedication, skill, and judgment to the job every day, and I am grateful for the opportunity to build on their contributions and to lead efforts to pursue swift, fair, and vigorous enforcement actions.”
Welshans likewise expressed her enthusiasm for the SEC enforcement team and paid tribute to her deceased predecessor Friestad. “I am excited to work with this talented team to help protect investors and the integrity of our markets,” she said in the press release. “I am truly honored by this appointment and will strive to be a credit to Scott’s enduring legacy of bringing complex and significant cases.”
The U.S. government has brought an increased amount of enforcement to bear in the cryptocurrency arena through various regulatory agencies, including the SEC and the Bureau of Customs and Border Protection.