Madoff's Trustee Goes After Becker Family, SEC General Counsel


Wednesday, February 23rd, 2011
News

Bernard Madoff’s villainous Ponzi scheme was wide-ranging in its effects. As a result, the trustee who assumed responsibility for recouping more than $1.5 million is knocking at the doors of David M. Becker, general counsel of the Securities Exchange Commission, according to the Washington Post.

This latest lawsuit involving Bernie Madoff is part of Irving Picard’s crusade to get back funds from investors who were benefited by the Ponzi scheme Madoff orchestrated. Specifically, the files do not state anything blatantly accusing the Becker family of malicious intentions or for that matter any wrongdoing.

The intention of the lawsuit is to recover the “fictitious profit” so that it can be redistributed among the victims of this Ponzi scheme according to Picard.

In response to the lawsuit, Becker has declined to be interviewed, but said in a statement that he had no involvement with the financial affairs of Madoff until the death of his mother in 2004 when her account was liquidated. He also stated that he will consult with legal professionals and “do the right thing,” according to the Washington Post.

When the exposure of Madoff’s $65 billion fraud was uncovered in December of 2008, it was largely the Securities Exchange Commission that took heat, as they were accused of failing to see through Madoff’s scam. Never the less, Madoff is currently serving out his 150-year prison sentence for swindling thousands of investors over the course of several years.

Notably, Picard did not know at the time that the lawsuit was filed against Becker that Becker was the SEC’s general counsel. Nearly $10 billion has been recovered thus far, bringing the total to roughly half of what investors lost. One of the major investors, Jeffry M. Picower has been the recipient of most of this money. Picower has also gone after other major financial institutions and the owners of the New York Mets alleging that they stood by and let the fraud happen.

Sources:

http://www.nypost.com/p/news/local/top_sec_lawyer_and_his_bros_inherited_vHLtc4soe2eUF1o8FegzPJ

http://www.bloomberg.com/news/2011-02-23/sec-s-top-lawyer-becker-sued-for-inheriting-madoff-ponzi-profits.html

http://www.washingtonpost.com/wp-dyn/content/article/2011/02/23/AR2011022306509_2.html?sid=ST2011022306836

 



Article by Andrew Timm

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: becker , madoff , sec general counsel

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