WASHINGTON — To help expedite the distribution of more than $5billion Securities and Exchange Commission recoveries to injuredinvestors, the agency announced on Feb. 5 the creation of theOffice of Collections and Distributions.

Richard J. D'Anna has been hired as the first-ever director ofthe new office. D'Anna previously served as senior vice presidentat 1st Bridgehouse Securities and as senior vice president andconsultant at FITS, Inc. He also served in senior roles at FiservSecurities, Correspondent Clearing, Custody Operations, and atPrime Brokerage Services at Deutsche Bank/Alex Brown.

Lynn M. Powalski will become deputy director of the Office ofCollections and Distributions. Powalski has been an assistantdirector and assistant chief litigation counsel for collections anddistributions within the SEC's Division of Enforcement.

“The commission's strong commitment to recovering money fromwrongdoers and returning it to investors is amply demonstrated bythe more than $2 billion we distributed last year,” said SECChairman Christopher Cox. “In 2008, we can do more.”

The Sarbanes-Oxley Act passed by Congress in 2002 for the firsttime gave the SEC authority to distribute financial penalties paidby securities law violators directly to defrauded investors. Usingthis authority, the SEC said it already has distributed more than$3.5 billion. The new office is intended to further expedite thereturn of more than $5 billion in so-called Fair Funds to harmedinvestors, while cutting red tape and the costs of thedistributions, according to SEC.

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