Mary Schapiro Takes New Findings On Former Top Lawyer's Madoff Conflict Of Interest "Very Seriously"

Thursday, September 22, 2011 01:20
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Mary Schapiro Takes New Findings On Former Top Lawyer's Madoff Conflict Of Interest

Tags: madoff | sec

The head of the SEC, Mary Schapiro, is planning to follow through on all the recommendations found in a newly released internal investigation into the way the regulator's general counsel handled his connection to Bernard Madoff.

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The probe determined that David Becker, who recently retired from his post as the SEC's top lawyer, was directly compromised in his handling of Madoff thanks to his mother's investment in a Madoff fund.

 

In all, Becker inherited $1.5 million in Madoff money from his mother's estate.

 

Schapiro says she's going to look into moving the SEC's ethics chief out from under the inspector general's office in order to prevent future conflicts of interest. 

 

She's also scheduling a new vote on how the equity in Madoff accounts should be determined.

 

Becker previously lobbied for investors to be compensated according to the amount of money they originally paid into the Ponzi scheme, adjusted for inflation. The leading alternative would have been to add a nominal opportunity cost -- a Treasury yield, effectively -- to what the bilked clients were due.

 

This added payout would, however, have taken more money from Madoff clients like the Becker family, who actually cashed out before the scheme imploded and so "earned" a paper profit.

 

 

 

That 

 

 

http://advisors4advisors.com/compliance/regulatory/article/13379-sec-updates-congress-on-ponzi-porn-other-scandals

 

 

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