TheCorporateCounsel.net

Yesterday, the SEC announced that SEC Enforcement Director Gurbir Grewal will be leaving the SEC, effective October 11, 2024. Sanjay Wadhwa, the Division’s Deputy Director, will serve as Acting Director, and Sam Waldon, the Division’s Chief Counsel, will serve as Acting Deputy Director. Grewal’s tenure as Director of the Division of Enforcement will no doubt be remembered for being very active. The press release announcing the personnel changes notes:

“We have been incredibly fortunate that such an accomplished public servant, Gurbir Grewal, came to the SEC to lead the Division of Enforcement for the last three years,” Chair Gary Gensler said. “Every day, he has thought about how to best protect investors and help ensure market participants comply with our time-tested securities laws. He has led a Division that has acted without fear or favor, following the facts and the law wherever they may lead. I greatly enjoyed working with him and wish him well.”

Chair Gensler added, “I’m pleased that Sanjay Wadhwa has said yes to taking on the Acting Director role. He has served as part of a remarkable leadership team, along with Gurbir, as Deputy Director and has been with the agency for more than two decades. He has shown strong leadership, is widely respected among his colleagues, and has provided invaluable counsel to the Commission. I’m pleased that Sanjay will be joined by Sam Waldon, currently Enforcement’s Chief Counsel, who is becoming Acting Deputy Director. Sam has provided sound advice to the Division and the Commission on critical legal issues.”

Before joining the SEC as Director of the Division of Enforcement in June 2021, Grewal served as Attorney General of the State of New Jersey, and he had served as a prosecutor at the state and Federal levels. He spent time in private practice as well.

Over the next few months, we will likely be covering more departures of the SEC’s current leadership. It is rare these days that Directors and other senior leaders at the SEC serve for more than the few years that coincide with a Chair’s tenure. Particularly in a Presidential election year where no incumbent is running, it is foreseeable that changes to the SEC’s leadership and agenda will be coming soon, no matter what the outcome of the election. In my recollection, the reality of this inevitable turnover at the top at the SEC is always tough to navigate, because as a Staffer you are doing your thing and then someone new comes along and changes the priorities without necessarily understanding the situation. But then again, that is the job you sign up for!

– Dave Lynn