WASHINGTON, May 9 (Reuters) - A top official at the U.S.
Securities and Exchange Commission is leaving the agency to
become chief compliance officer of Prudential Financial Inc's
mutual fund arm, the SEC and Prudential announced on
Bruce Karpati, who has led the asset management unit within
the SEC's enforcement division, will lead compliance for
Prudential's registered investment advisory company and serve as
chief compliance officer for its mutual funds, the company said.
The asset management unit is one of the SEC's specialized
enforcement units, and focuses on investment advisors and
As head of the unit, Karpati has led the SEC's efforts to
examine hedge fund performance data to uncover investment fraud.
"Bruce has been a pioneer in the use of complex data
analysis to detect securities fraud," George Canellos, who
co-heads the SEC's enforcement division said in a statement.
Cases the SEC has brought during Karpati's tenure include
charging hedge fund star Philip Falcone with market manipulation
and charging a former $1 billion hedge fund advisory firm and
two executives with scheming to overvalue assets under
Earlier on Thursday Falcone's Harbinger Group Inc
disclosed Falcone and his hedge fund, Harbinger Capital
Partners, have reached a preliminary agreement to pay $18
million to settle the SEC's charges.