Ex-SEC Lawyer on Madoff Case Should Face Probe, Watchdog Says

1 min read

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A former Securities and Exchange Commission lawyer who handled Bernard Madoff’s legal matters for the agency should face a criminal investigation, the SEC’s top watchdog said Tuesday.

Recently, it was revealed David Becker, formerly SEC general counsel, was allowed to work on the Madoff case despite inheriting profits by liquidating an account his late mother held in Madoff’s investment firm.

In a 123-page report, SEC Inspector General H. David Kotz said Becker “participated personally and substantially in particular matters in which he had a personal financial interest,” and “the matters on which he advised could have directly impacted his financial position.”

Becker was involved in helping the SEC figure out how to compensate victims of Madoff’s fraud, Kotz said in his report. Becker advocated adjusting the payments to account for inflation.

According to Reuters, after Becker left the SEC, Madoff trustee Irving Picard sued Becker and his two brothers for $1.5 million in alleged phony profits their mother’s estate received.

Kotz said Becker was aware “there was a possibility the trustee would bring a clawback suit against him,” but nevertheless continued to work on figuring out a compensation plan.

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