On Wednesday, SEC Director of Enforcement Robert Khuzami testified before the United States Senate Committee on the Judiciary. Khuzami's testimony concerned "Investigating and Prosecuting Fraud after the Fraud Enforcement and Recovery Act," and offered several new bits of information about the activities of the Enforcement Division in FY2010 (which ends on September 30). Among many other things, Khuzami emphasized the following developments and accomplishments:

The current effort to establish, per the requirements of Dodd-Frank, a Whistleblower Office within the new Office of Market Intelligence. Khuzami stated that information received through the new Whistleblower Program will enhance the ability of OMI to provide staff with a broader set of relevant evidence at the initial stages of an investigation.

With a few days remaining in FY2010, the SEC has:

Filed 634 enforcement actions;

Obtained orders requiring disgorgement of $1.53 billion in ill-gotten gains;

Obtained orders requiring payment of penalties of $968 million;

Obtained 45 emergency temporary restraining orders to halt ongoing misconduct and prevent imminent investor harm;

Obtained 56 asset freezes to preserve funds for the benefit of investors; and

Distributed to injured investors nearly $2.0 billion from 42 separate Fair Funds.

Heightened levels of cooperation with criminal and other regulatory authorities, including the DOJ, the FBI, self-regulatory organizations, foreign regulators, state securities regulators, the Commodity Futures Trading Commission (CFTC), IRS, the U.S. Postal Inspection Service, SIGTARP, and banking regulators. Khuzami mentioned that the agency recently entered into an agreement with the FBI under which an FBI agent will be embedded within the SEC's Office of Market Intelligence.

Enforcement's Market Abuse Unit is in the process of establishing an "Analysis and Detection Center" that will be staffed by attorneys and specialists trained in conducting Automated Bluesheet Analysis. The Center will analyze trading strategies across all types of securities, identifying potentially abusive trading practices.

Enforcement is currently in the process of drafting proposed rules for the Whistleblower Program, including the procedures for whistleblowers to submit original information to the SEC and for the SEC to make awards to whistleblowers.