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.”
