David M. Becker, General Counsel at the SEC, was sued by Madoff trustee Irving Picard, who's trying to clawback over $1.5 million in "fictitious profits" that Mr. Becker's mother had received.  Mr. Becker’s mother died in 2004, and he and his brother served as co-executors of the estate.

An SEC spokesperson says that Mr. Becker "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."   

In his complaint, Picard does not allege that Mr. Becker has knowledge of the Madoff fraud.  Nevertheless, the suit is another bizarre twist in the Madoff case.

    Timing of David Becker's Service at the SEC.   Mr. Becker was not at the SEC when he was unwinding his mothers financial affairs in 2004, nor was he at the Agency in 2008, when the Madoff fraud was revealed.  He was at the SEC twice:  from 1998 to 2002, and from 2009 to present.  In between, he served as a partner at Cleary Gottlieb Steen & Hamilton.  Upon returning to the SEC in 2009, Mr. Becker reportedly informed the Agency of his connection to the Madoff fraud. 

Interestingly, Mr. Becker will be leaving the SEC next week to return to the private sector.  "Although I knew this was a two-year commitment, I am sorry this day has approached so fast," said SEC Chairman Mary Schapiro, when his departure was announced earlier this month.   For further details, go to:   [NYT Dealbook, 2/23]