The Securities and Exchange Commission is looking to put more scrutiny on hedge funds with the hiring of 30 new investigators. The agency has been on the hot seat, accused of being too lax when it comes to due diligence, especially with the discovery of high-profile hedge fund scandals, such as those involving Arthur Nadel of Scoop Management Corp., Galleon Group and  Bernie Madoff, over the past two years. So, where is the SEC looking to hire their new investigators? Where else but the hedge funds themselves, according to Crain's New York.

The SEC is looking for financially sophisticated investigators to spot anomalies that hedge fund industry outsiders may not easily detect. As 700 hedge funds shut their doors in 2009, a large pool of such workers should be readily available.

The addition of 30 new investigators would bring the total number of employees of the SEC in the New York office to 390.