The Securities and Exchange Commission has named Michael J Osnato, Jr as chief of the enforcement division unit that conducts investigations into complex financial instruments.
Osnato, who joined the SEC staff in 2008 and has served as an assistant director in the New York regional office since 2010, has played a key role in a number of significant SEC enforcement actions.
Osnato helped spearhead the SEC’s case against JPMorgan Chase & Co and two former traders for fraudulently overvaluing a complex trading portfolio in order to hide massive losses, and the subsequent action in which the bank admitted that it violated federal securities laws.
Osnato will now lead a complex financial instruments unit that is comprised of attorneys and industry experts working in SEC offices across the country to investigate potential misconduct related to asset-backed securities, derivatives, and other complex financial products. The unit was created along with four other specialised enforcement units in 2010, and was formerly known as the structured and new products unit.
“Michael is a natural leader who brings keen investigative instincts and exceptional judgment to his work,” says Andrew J Ceresney, co-director of the SEC’s division of enforcement. “He has been a valuable part of our efforts to punish misconduct related to complex financial instruments, and we are pleased that he will bring his considerable talents and skills to the unit.”