Posted Feb 28, 2012 05:50 pm CST
A former general counsel of the U.S. Securities and Exchange Commission has agreed to settle, along with his brothers, for $556,017 a claim brought by the trustee overseeing the resolution of Bernard Madoff’s massive Ponzi scheme over an inheritance the siblings received from their mother.
The agreed payout by David Becker and his brothers will essentially wipe out the paper profit they obtained via their mother’s estate, in 2004, from her investment in Madoff’s purported hedge fund, Reuters reports.
The settlement must still be approved by a bankruptcy court judge, at a hearing now scheduled for April, before it is final.
That the hedge fund was in fact a huge scam, for which Madoff is presenting serving a 150-year prison term, was uncovered in 2008.
ABAJournal.com: “DOJ Has No Plan to Investigate Former SEC Gen’l Counsel David M. Becker, His Lawyer Says”
ABAJournal.com: “Counseling Memos, Pay Cuts, Suspensions, Demotions for 8 SEC Workers Who Missed Monster Madoff Fraud”