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Former SEC General Counsel Settles Claim Over Madoff Profits Inherited From Mom
The former top lawyer at the Securities and Exchange Commission (SEC) will return all of the profits that he and his two brothers inherited from their mother, who reaped the gains as a result of her investment in Bernard Madoff’s Ponzi scheme.
David Becker and his two brothers were beneficiaries of the estate of their mother, Dorothy, who died in 2004 – four years before Madoff’s massive scheme came to light. Irving Picard, the trustee seeking money for defrauded Madoff investors, filed suit against the brothers to recoup the paper profits they inherited.
The brothers have agreed to pay $556,017 to settle the case, “which represents roughly all of the so-called fictitious profits that the Beckers received after inheriting money from their mother,” according to Reuters.
When he was General Counsel at the SEC, the body that regulates the securties industry, David Becker had participated in discussions over payouts to Madoff victims even though he had a financial stake in the outcome. In November 2011, the U.S. Department of Justice decided not to pursue an investigation into the possible conflict of interest.
The settlement must still be approved by a bankruptcy court judge; a hearing is scheduled for April 3 in Manhattan bankruptcy court. The case is Picard v. Estate of Dorothy Becker,U.S. Bankruptcy Court, Southern District of New York, No. 10-ap-04620.