Remember me:
Just Anticorruption
DOJ Not Pursuing SEC’s Ex-Counsel Over Madoff Episode
By David Stout | November 10, 2021 12:39 pm

David Becker, former general counsel for the Securities and Exchange Commission, came under scrutiny in the episode involving Ponzi schemer Bernard Madoff, but he will not be pursued by the Department of Justice, The New York Times reported on Wednesday.

The questions concerned Becker’s participation in SEC discussions about how to compensate victims of Madoff’s fraud, despite the fact that Becker himself had a financial interest in the outcome, since he had inherited money in a Madoff account from his mother several years before the fraud became public late in 2008 (see Main Justice’s earlier report.)

When Becker’s financial stake became public, he said he had disclosed his interest to the SEC’s chief ethics officer and SEC Chairwoman Mary L. Schapiro.  But questions persisted because not all SEC commissioners were informed, according to an SEC inspector general’s report.

William R. Baker III, a lawyer at Latham and Watkins LLP who represents Becker, said the DOJ contacted him last week to say there would be no investigation of his client. “We’re gratified,” Baker told The Times. “It’s consistent with our view that Mr. Becker discharged his obligations in a very responsible fashion.”


Leave a Comment

You must be logged in to post a comment.

WHO'S ACCOUNTABLE? HEALTH CARE INDUSTRY PROSECUTIONS AND THE MOUNTING CONTROVERSY OVER FEDERAL TACTICS.This Main Justice public policy discussion was held Oct. 18, 2011 in the Rayburn House Office Building on Capitol Hill. Panelists: Joan McPhee of Ropes & Gray LLP; Vicki Girard, Georgetown University Law Center professor; Jeff Bucholtz of King & Spalding LLP; and Peter Urbanowicz, Alvarez & Marsal. Moderator: Mary Jacoby, Editor-in-Chief of Main Justice.

"Most appellate courts have upheld the constitutionality of this historic law, and when the Senate voted to pass the Affordable Care Act, it also voted specifically on its constitutionality." -- Sen. Patrick Leahy (D-Vt.), welcomes the Supreme Court's decision to rule on President Obama's healthcare reform.