Family of SEC's top lawyer 'earned' $1.5mil from Madoff

[notesdev]

Irving Picard hits Securities and Exchange Commission's top lawyer with Bernie Madoff lawsuit

The family of the top lawyer at the Securities and Exchange Commission invested with Bernie Madoff and earned more than $1.5 million in ill-gained profits, according to trustee Irving Picard, who has named the lawyer, David M. Becker, as a defendant in a clawback lawsuit, a Daily News investigation has found.

The apparent conflict of interest raises significant questions about the watchdog commission's failure to stop Madoff and his $65 billion Ponzi scheme, despite repeated red flags and investigations into his operations.

Becker, 63, who is leaving his post as general counsel and senior policy director of the SEC in five days to return to the private sector, has never publicly disclosed his family's ties to Madoff. He and his two brothers, who are also defendants in the suit, were named executors of their mother's estate, which included a Madoff account, after her death in 2004. They liquidated the account in 2005, withdrawing $2,042,845, and are being sued as co-executors of the estate and individually.

David Becker was the SEC's general counsel from 2000-2002 and again from 2009 until this month. He joined the agency in 1998 as deputy general counsel.

http://www.nydailynews.com/sports/baseball/mets/2011/02/22/2011-02-22_irving_picard_cites_family_ties_to_bernie_madoff_for_securities_and_exchange_com.html

[PoliticAverse]

1. "apparent conflict of interest "...

I wonder how his returns compared to that of other investors in the fund.

[ProgressiveProfessor]

2. If the estate exited probate, the claw back may not be successful

Going to be an interesting legal fight here.

[notesdev]

3. so little interest in this

I would figure there'd be some good outrage here in seeing proof emerge of high-level collusion between a Wall St. scam artist and the highest levels of the SEC.

[howaboutme]

4. Of course there was no pressure

from high ranking members of Congress (who received donations from Madoff and his investors) to have the SEC butt out of any investigation based upon Harry Markopolos's gift wrapped investigation. Most of the investors thought that Madoff had an inside track and they did not want the SEC making waves in the waters.

This case was ignored because of high level pressure. http://www.youtube.com/watch?v=uw_Tgu0txS0

[amandabeech]

6. This is scandalous.

No wonder the SEC refused to investigate tips on Madoff.

The SEC appears to be simply toothless, like the rest of our executive branch.

[dixiegrrrrl]

5. Verrry interesting.