john walsh was appointed acting director of the office of compliance investigations and examinations. the sec in august 2009, just a few weeks ago. he has served athe sec for 20 years including service in the office of geral counsel, the division of enforcementnd the special counsel to chairman author leavitt. he has been a member of the ocie staff since 1995. robert khuzami, i hope i pronounced that correctly, he was appointed as director of the sec divisionf enforcement in february of 2009. he came to the sec from deutsche bank where he had served as general counsel for the americas since 2004. earlier as global head of litigation and regulatory investigations and prior to this, mr. khuzami served as a federal prosecutor for 11 years with the u.s. attorney's office for the southern district of new york prosecuting complex securies and white collar criminal matters including insider trading, ponzi schemes and accounting fraud. obviously, an extensive background. we thank all of our witnesses today for being with us. mr. kotz, i'll begin with you. i'm going to have the lights on to wa

john walsh was appointed the acting director of the office. he has served at the sec for 12 years, including in the office of general counsel, the division of enforcement, and the special counsel to 0 1/3 leavitt. -- to arthur levitt. robert khuzami, i hope i pronounced that correctly, was appointed as the director of the sec division of enforcement in figure reap 2009 and came from deutsche bank, where he served as general counsel for the americans. he useprior to this, he served a federal prosecutor for 11 years with the u.s. attorney's office. obviously, he has an extensive background. we thank all of our witnesses today for being with us. mr. kotz, we will start with you. i will have the letter to watch your time. we don't do to be too short, but you'll have to move along so we can get to all of the questions. >> thank you for the opportunity to testify today before this committee. in my testimony, immediately after bernie madoff in mid to operating a ponzi scheme, i open investigation as to what the sec failed to discover the scheme. over

. >> reporter: john walsh, host of "america's most wanted" believes a 2006 law named after his murderedy. >> three years ago, president bush signed the adam walsh act in the rose garden and this law still isn't funded. >> it makes me angry because we already know these problems exist, we created laws but we don't enforce it we don't fund them. >> reporter: mark lunsford's daughter jessica was raped and killed in 2005 by a convicted sex offender. he says it'll take much more than a registry to solve the problem. >> the sex offender registry isn't going to keep your kids safe. >> are you living next to a sex offender? at the national sex offender public website, you can find out. i put in the address of where i grew up in miami and found out there are 100 offenders living within five miles of my childhood home. nationally there are more than 600,000 sex offenders. some believe a problem that big demands a tougher approach. >> and according to the group family watchdog, which tracks sex offenders by state, the typical sex predator will assault 117 times before being caught. maggie? >> beyo

the country and we're really making some amazing progress and hopefully following in the steps of john walshin the whole missing children's act. we're doing some great things, forming some federal legislative standards, that we're hoping to take up to capitol hill during the next couple of sessions of congress. it's a nice turning negative into a positive and it's good. >> absolutely. you stay strong. i really admire what you're doing, nate, thanks for talking with me today. >> thank you, car kyraing, i appreciate it. >>> walter ellis is accused of nine murders around milwaukee, he's a former prisoner who should have given a dna sample under state law, it should have been collected ability years ago prior to the last murder. police have acquired dna testing since the arrest. apparently melanie oudin had to switch hotels because her reservation ran out. the 17-year-old said she didn't expect to make it so far in the u.s. open, so the room wasn't in her name so the marriott didn't even know that she was there, she plays in the quarterfinals tonight and we heard that she did find a room somewhe

the question is somebody commits a murder, you put his picture on billboard, and john walsh talks himon. people kills thousands of people and we don't want to say who we're looking for. it doesn't make sense to me. >> we hear the major spots like stadiums or big places like that, which could be frightening for people especially when we're in the middle of football. you have 70 or 80,000 people at a stadium. it seems like an easy target, obvious target? you have to go on with your life. if you think about t they don't have to kill a lot of people. if you went and opened up a shopping mall and school yard, you would collapse the country. terrorism doesn't have to kill a lot of people. it just has to create terror. i would not be worried about the venues as they say. >> how do you look for terror bombs. >> i don't know, are they labeled. i don't know what they mean. >> so many people have that kind of thing. where do you begin to look for that kind of thing? >> the other thing, we're talking about one of the leaders at this, they arrested that had gone over the al-qaeda training camp in

my name is john walsh, and i am the acting director of the office of compliance inspections and examinations at the s.e.c. first, let me say without qualification that we all sincerely regret that we did not protect the -- detect the madoff fraud. i believe i speak here for everyone in the examination program. we view the madoff case as a terribly unfortunate example of what happens when we fail in our mission. the type of fraud perpetrated by mr. madoff is the kind of misconduct we spend our days trying to uncover. that is why we feel the way we do. that is why we are working so diligently to address the problems that contributed to this failure. let me assure you, we have not been sitting idley by awaiting the report. since being appointed acting director last month, my most important goal has been to reshape the examination program. for example, we are actively recruiting staff with specialized industry experience. we are enhancing our training programs, including widespread participation in outside courses such as the certified fraud examiner program. we are requiring examiners to routin

my name is john walsh and i am the acting director of the office of compliance, inspections, and examinations at the sec. let me say it without qualification that we all sincerely regret that we did not detect the madoff fraud. as i believe i speak care for everyone in the examination program, we view the madoff case as a terribly unfortunate example of what happens when we fail in our mission. the type of fraud perpetrated by mr. madoff is the type of misconduct we spend our day trying to uncover. that is why we feel we do. that is why we're working so diligently to address the problem that contributed to this failure. let me assure you we have not been sitting idly by awaiting the inspector general's of report -- inspector general's report. the time when we learned about the fraud, we have been working hard to revamp the way we operate. since being appointed acting director last month, my most important goal has been to continue to reshape the examination program. for example, we are actively recruiting staff with specialized industry experience. we are enhancing our training programs inclu

john lucich. joining us, psychologist wendy walsh.ndy, michaele garecht's mom, she talked about being relieved. you know, she's waiting here, yes, she wants answers. this is 20 years after her little girl goes missing. what is she going through? >> imagine the emotional work of a mother who's lost a child. anybody who's lost somebody close is probably familiar with the denial, anger, bartering, depression and finally acceptance. she was snapped back into bartering. maybe if we searched this house, maybe there's a chance. maybe then she'll live. so she's going to be doing that work of mourning all over again. and every time there's a glimmer of hope, people with missing children have to work through those same feelings of loss again. it's a very, very difficult road to walk. >> i spoke to her and she -- she's not backing away from the hope and the faith that michaele -- who can blame her? she's clinging to hope. >> one of the examples of the elizabeth smart taught us all is to keep our eyes open and to continue to hope. it's only when