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Washington, D.C., Sept. 29, 2005 - Ari Gabinet, District Administrator of the Securities and Exchange Commission's Philadelphia District Office, announced today that he will leave the Commission at the end of October to head the securities regulation group at the Vanguard Group, Inc.

Gabinet joined the Commission as the District Administrator of the Philadelphia District Office on Jan. 6, 2003, and was responsible for the Commission's examination and enforcement programs in Pennsylvania, Delaware, Maryland, Virginia, West Virginia and the District of Columbia. Gabinet has overseen a 55% increase in the PDO's staff and its relocation to new offices. Since he took over as District Administrator¸ the Philadelphia Office has been responsible for a number of high profile enforcement cases, notably with respect to undisclosed revenue sharing and directed brokerage payments in the mutual fund industry. They include the Commission's $50 million settled revenue sharing action against Morgan Stanley DW and $20 million settled action against CitiGroup Global Markets, both brought jointly with NASD; the Commission's directed brokerage cases against mutual fund giants MFS, PIMCO and Putnam; and the Commission's $260 million market timing litigation against Harold Baxter, Gary Pilgrim, and the PBHG funds, coordinated with the New York Attorney General's office.

The office's examination staff monitor regulatory compliance at some of the largest mutual fund complexes and broker dealers in the country. Under Gabinet's leadership, the PDO exam staff undertook broad examination initiatives in pay-to-play, performance advertising, variable annuity switching, and transfer agent lost-security holder functions, among other things.

SEC Director of Enforcement Linda Thomsen said, "Ari has been a dedicated and energetic public servant. He has approached the work of protecting investors with intelligence, energy and creativity. He has also been a wonderful and inspiring colleague and leader."

Lori Richards, Director of the SEC's Office of Compliance Inspections and Examinations stated , "Ari is a superb manager and challenged his staff to identify creative solutions to difficult problems. His passion for the work of the SEC and for the examination program resulted in meaningful protection for investors in the region served by the Philadelphia Office."

In announcing his plans to leave the Commission, Gabinet said, "It's been a thrill to work at the Commission during one of its most exciting and challenging periods. I've learned from amazing people in the home office, from my colleagues in the field offices, and most of all from the staff of the Philadelphia office. Their teamwork, creativity, and high professional standards have been an inspiration to me, and I will miss them all."

Prior to joining the Commission, Gabinet was a partner at Dechert LLP. Gabinet received his BA degree with honors from Swarthmore College in 1979 and received his law degree, cum laude, from the University of Pennsylvania Law School in 1982.


Modified: 09/29/2005