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Feb. 23
Thursday 23 Feb. 2012 07:42

US SEC taps new interim inspector general to replace Kotz

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By Sarah N. Lynch

WASHINGTON, DC, Jan 27 (Reuters) - The U.S. Securities and Exchange Commission has appointed Deputy Inspector General Noelle Maloney as interim inspector general to temporarily replace David Kotz, who is leaving the SEC for a job with a private investigative firm.

Maloney will head the inspector general's office while the agency searches for a replacement, the SEC said.

Kotz, 45, developed a reputation as a tough internal watchdog during his four-year tenure at the SEC. He probed everything from the agency's failure to catch convicted Ponzi swindler Bernard Madoff to bungled SEC contracts and even pornography-watching by agency employees.

But the hard-hitting lawyer has also drawn criticism from SEC staff who have complained his tactics have led to a culture of fear at the agency.

Kotz's last day in the office was Friday.

Under new provisions in the Dodd-Frank Act, the inspector general is supposed to report to all five SEC commissioners, a change from prior years when the inspector general reported directly only to the chairman.

The SEC said it plans to launch a search for Kotz's replacement that will involve all of the commissioners in the hiring process.

Like Kotz, Maloney once worked for the Peace Corps. She joined the SEC in January 2005, working in the general counsel's office.

In July 2008, she became the deputy inspector general. In that role, she has helped to oversee both audits and investigations, as well as various administrative functions of the office.

She holds a bachelor's from the College of New Jersey and a law degree from Rutgers School of Law-Camden.

(Reporting By Sarah N. Lynch; Editing by Gary Hill) Keywords: SEC/INSPECTOR GENERAL

(sarah.n.lynch@thomsonreuters.com)(202-354-5831)

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