Legal News

SEC General Counsel Becker Latest To Face ?Clawback? Suit By Picard

By Chad Bray

The Securities & Exchange Commission’s general counsel has been sued, along with his brothers, in a “clawback” lawsuit by Irving Picard (pictured), the trustee seeking to recover assets for victims of Bernard Madoff’s fraud.

The lawsuit, filed in December and served earlier this month, seeks to recover $1.54 million in alleged fictitious profits from the estate of David Becker’s mother. Becker, the SEC’s general counsel, and his brothers served as co-executors on her estate following her death in June 2004. Click here for the complaint.

“He was not involved in his parents’ financial affairs, and has no recollection of his parents’ investment with Madoff prior to his mother’s death and the subsequent liquidation of the account,” said John Nester, a SEC spokesman.

The lawsuit doesn’t allege Becker or his family members had knowledge of the fraud.

Becker is expected to leave the SEC and return to private practice at the end of the month. He returned to the SEC as general counsel and senior policy counsel in February 2009.

He joined the regulator as deputy general counsel in 1998 and was named general counsel in January 2000. He originally left the SEC in 2002, serving as a partner at Cleary Gottlieb.

Mark Cahn, deputy general counsel for litigation and adjudication, is expected to take over the role as the SEC’s general counsel when Becker leaves the commission.

Full post as published by Law Blog - WSJ.com on February 23, 2011 (boomark / email).