A lawyer for a $5 billion hedge fund firm was chosen by the Securities and Exchange Commission to head up the unit that should have been alerted to irregularities at Bernard Madoff’s business.

Norm Champ will be the associate regional director for examinations in the SEC’s New York office, the agency said.

For the past 10 years, Champ has been general counsel for Chilton Investment Co., a $5 billion hedge fund firm headquartered in Stamford, Conn.

The SEC’s latest appointment is in response to criticism, both outside and inside the agency, that its staffers don’t have enough practical experience to catch wily con-men like Madoff.

Besides his role at Chilton, Champ brings a lot of industry experience to his new job. He is on the board of the Managed Funds Association, a trade organization for the asset class, although he will resign that post because of his government appointment. He also teaches private funds investment management law at Harvard.

Chilton said in a statement that Jim Steinthal, who acts as general counsel to its hedge funds, will succeed Champ as general counsel to the firm.