FraudBaron.com

The Sarbanes-Oxley Act passed by Congress in 2002 for the first time gave the SEC authority to distribute financial penalties paid by securities law violators directly to injured investors. Using this authority, the SEC already has distributed more than $3.5 billion. The new office is intended to further expedite the return of more than $5 billion in so-called Fair Funds to harmed investors, while cutting red tape and the costs of the distributions. 

Richard J. D'Anna has joined the SEC as the first-ever director of the new office. D'Anna will use his private sector experience in the financial services industry for tracking and managing financial assets to expedite the distribution of more than $5 billion in SEC recoveries to injured investors.

Lynn M. Powalski will become deputy director of the Office of Collections and Distributions. Powalski has been an assistant director and assistant chief litigation counsel for Collections and Distributions within the SEC's Division of Enforcement.  "The Commission's strong commitment to recovering money from wrongdoers and returning it to investors is amply demonstrated by the more than $2 billion we distributed last year," said Chairman Cox. "In 2008, we can do more. Dick and Lynn bring exactly the right skill-sets to their new positions, and they will make an excellent team to lead the SEC's efforts to get money back to defrauded investors as quickly and efficiently as possible."

Prior to joining the SEC staff, D'Anna was senior vice president at 1st Bridgehouse Securities and a senior vice president and consultant at FITS, Inc., operating from his base in Baltimore, Md. Powalski has worked in the SEC's Division of Enforcement since 2001. Her previous experience includes serving as a counsel in the Legal Division of the FDIC and as a special assistant U.S. attorney in the U.S. Attorney's Office for the Eastern District of Virginia.