SEC

Summary Box: Seeking Justice probe of ex-official

AP News
|
Posted: Sep 20, 2011 8:27 PM
Summary Box: Seeking Justice probe of ex-official

EX-SEC OFFICIAL UNDER SCRUTINY: The inspector general of the Securities and Exchange Commission has asked the Justice Department to investigate whether a former top SEC official who benefited financially from Bernard Madoff's Ponzi scheme violated conflict-of-interest laws in helping establish SEC policy.

ROLE IN MADOFF RECOVERY POLICY: The SEC's former general counsel, David Becker, played a key role in crafting agency policy on how Madoff's victims should be compensated _ after he inherited a Madoff account from his mother. In a report issued Tuesday, the inspector general found that Becker participated "personally and substantially" in issues in which he had a financial interest.

RE-DOING THE SEC VOTE: Inspector General David Kotz also recommended that the five-member SEC vote again on how claims should be paid to Madoff customers to eliminate any possible bias. SEC Chairman Mary Schapiro said she will have the panel vote again.