The top attorney at the Securities
and Exchange Commission is being sued over allegations his family’s estate
wrongfully received over $1.5 million in phony profits from Bernard Madoff’s massive fraud.
The lawsuit, filed late last year
by Madoff trustee Irving Picard, targets the SEC’s departing General Counsel
David Becker along with his brothers William Becker and Daniel Becker.
All three are co-executors of their
mother Dorothy Becker’s estate.
Dorothy Becker passed away in June 2004.
According to the lawsuit filed in
federal court in New York, the Becker estate received a little over $2 million
since 11 December 2002 from Bernard L. Madoff Investment Securities LLC.
“The trustee’s investigation
has revealed that $1,544,494 of this amount was fictitious profit from the
Ponzi scheme,” the suit says. “Accordingly, defendants have received
$1,544,494 of other people’s money.”
Madoff was arrested in December
2008 after admitting he ran a decades-long, multibillion-dollar swindle,
considered the biggest investment fraud in history.
John Nester, a spokesman for the
SEC, said on David Becker was unaware of his parents’ investments with Madoff.
“He was not involved in his
parents’ financial affairs, and has no recollections of his parents’ investment
with Madoff prior to his mother’s death and the subsequent liquidation of the
account,” he said in a statement.
Picard’s suit seeks to recover that
money from the Beckers to return it to wronged Madoff investors.
Becker is preparing to leave the
SEC at the end of this month and return to private practice.