Former SEC Watchdog Kotz Violated Ethics Rules, Review Finds

The former internal watchdog for the U.S. Securities and Exchange Commission violated ethics rules by overseeing investigations that touched on people with whom he had “personal relationships,” an outside review found.

H. David Kotz, who resigned as the agency’s inspector general in January amid questions about his tactics and conduct, shouldn’t have participated in a probe of the SEC’s office re-organization because he engaged in “extensive” and “flirtatious” communications with an employee associated with the project, according to the review.