Bloomberg reported Monday that Linda Thomsen, director of the Securities and Exchange Commission's enforcement division, is stepping down.
The change is not unexpected given the new administration and changes in leadership that typically follow. However, the move also comes on the heels of Thomsen's unit receiving substantial heat from Congress for not catching Bernard Madoff's fraudulent activities before they spiraled out of control.
An SEC spokesman told Bloomberg that Thomsen will stay to assist in the transition process, so her departure date has not yet been determined. She will return to the private sector after more than a decade with the SEC.
Former federal prosecutor Robert Khuzami is reportedly the top pick to take Thomsen's place. He is currently a Deutsche Bank AG attorney, Bloomberg says.