U.S. SEC watchdog eyes disclosure violations

WASHINGTON, June 1 (Reuters) - The U.S. Securities and Exchange Commission's internal watchdog is probing inappropriate leaks of agency information, including whether a senior official disclosed non-public information to a large investment bank.

A semi-annual report released on Monday showed Inspector General David Kotz's office has reviewed thousands of e-mails and documents related to the investment bank allegations and plans to issue a report on the matter in six months.

The report comes just weeks after it was revealed that federal criminal authorities are investigating alleged insider trading by two SEC enforcement lawyers because of findings by the inspector general.

Kotz is also in the middle of a probe on how the SEC conducted the Bernard Madoff case. Madoff was jailed for a $65 billion investment fraud that caught securities regulators by surprise and has unleashed a wave of criticism of the SEC from investors and lawmakers. That report is due in August.

Summaries of nearly 20 cases released on Monday reveal Kotz is also looking into allegations made in a published book that a former SEC lawyer may have taken confidential investigative materials when he left the SEC and provided that information to the company he went to work for. The name of the book was not provided.

The inspector general is also investigating allegations that two SEC enforcement lawyers repeatedly disclosed non-public information about agency investigations to a corrupt Federal Bureau of Investigation agent and a short seller.

In another probe, his office is investigating allegations that SEC staff revealed non-public information to a national news outlet.

And in yet another probe, Kotz is looking at whether an SEC employee brought a prohibited weapon to the workplace. (Reporting by Rachelle Younglai; Editing by Tim Dobbyn)