The US Securities and Exchange Commission has created a new office to help collect and distribute money to injured investors.

SEC chairman Christopher Cox announced the appointments of the top two managers of the agency’s newly created Office of Collections and Distributions. Richard D’Anna has joined the SEC as the first-ever director of the new office. Also, Lynn Powalski will become deputy director of the office.

The Sarbanes-Oxley Act gave the SEC authority to distribute financial penalties paid by securities law violators directly to injured investors. Using this authority, the SEC already has distributed more than $3.5 billion, it said. The new office is intended to further expedite the return of more than $5 billion in so-called Fair Funds to harmed investors, while cutting red tape and the costs of the distributions.

The SEC noted that D’Anna will use his experience in tracking and managing financial assets to expedite the distribution of more than $5 billion in SEC recoveries to injured investors.

“The commission’s strong commitment to recovering money from wrongdoers and returning it to investors is amply demonstrated by the more than $2 billion we distributed last year,” said Cox. “In 2008, we can do more. Dick and Lynn bring exactly the right skill-sets to their new positions, and they will make an excellent team to lead the SEC’s efforts to get money back to defrauded investors as quickly and efficiently as possible.”

Prior to joining the SEC staff, D’Anna was senior vice president at 1st Bridgehouse Securities. Powalski has worked in the SEC’s Division of Enforcement since 2001.