SEC decision not to have David Becker on Madoff scheme is under scrutiny

[alp227]

Source: The Washington Post

In the aftermath of Bernard L. Madoff’s epic investment fraud, the Securities and Exchange Commission was considering sending David M. Becker, the agency’s general counsel at the time, to testify on Capitol Hill on issues affecting how much money Madoff’s account holders could recover, according to a person familiar with the matter.

But there was a wrinkle: Becker’s mother had held an account with Madoff, which Becker and his brothers, heirs to her estate, liquidated before the fraud was exposed. Becker told a senior SEC official that if he testified before Congress, he should disclose the account, the source said.

Instead of sending Becker, the SEC sent one of his subordinates, deputy solicitor Michael A. Conley, to explain the SEC’s position, according to the source, who was not authorized to discuss the matter publicly and spoke on the condition of anonymity.

Much later, when the liquidated account came to light, it became a major black eye for the SEC. Lawmakers accused the agency of glossing over a potential conflict of interest.

Read more: http://www.washingtonpost.com/business/economy/sec-decision-to-have-deputy-counsel-testify-on-madoff-scheme-is-under-scrutiny/2011/09/09/gIQAZTphFK_singlePage.html

[Hubert Flottz]

1. Our government has a few bad apples.

[No Elephants]

2. Is that why the SEC never stoopped Madoff, despite whistlebowers?

[Jazzgirl]

3. Not only that but IIRC Madoff's niece was his company lawyer.

She was dating and ultimately married the guy in the SEC responsible for overseeing Madoff's activities. Interesting.

[Octafish]

4. Wonder how many more SEC officials had accounts with Madoff?

Being the former head cheese of NASDAQ was only part of it. The guy got results. Anybody who knew anything about investing knew Bernie was "The" man.

Whistle-blower Harry Markopolos disheartened by Bernie Madoff probe in documentary