With the Securities and Exchange Commission's Office of Compliance Inspections and Examinations (OCIE) coming under the scanner for its lapse in the swindler Bernard Madoff's business probe, a senior official of the agency - Lori A. Richards - has decided to step down!

Richards, who has been the Director of the OCIE for the last 14 years, oversaw her office's reevaluation of Madoff's firm three times - in 1999, 2004 and 2005 - without being able to detect the multibillion-dollar scam Madoff was engaged in!

Of late, the 700-employees strong OCIE has been struggling to keep pace with the expansion of the financial markets. And its job is bound to become more arduous in future, with the government proposing that the SEC should also evaluate hedge, private-equity and venture capital funds; over and above its current responsibility of ensuring that brokers and investment advisers, including mutual funds, adhere to the securities laws.

With Richards scheduled to step down August 7, OCIE Associate Director, John Walsh, will serve as the acting director, till SEC Chairman Mary L. Schapiro announces the appointment of a new Director.

About Richards' resignation, Schapiro said in a statement: "Lori is known widely for her passionate and tireless service to the agency. I respect her decision to leave the SEC and am grateful for her many years of public service."