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Press Release Published: Mar 16, 2011

Chairman Issa Subpoenas Madoff Trustee for Docs Related to SEC Lawyer’s Madoff Account

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WASHINGTON. D.C. – Last week, the Oversight Committee heard the testimony of SEC Chairman Mary Schapiro where she stated that allowing SEC General Counsel David Becker to advise on the Madoff investigation was a mistake. To help answer key questions about the impact of this mistake, Rep. Darrell Issa (R-CA), Chairman of the Committee on Government Oversight and Reform, has issued a subpoena to Madoff trustee Irving Picard for documents relating to the Becker family’s Madoff account and communications between Picard and the Securities and Exchange Commission.

“Victims of the Madoff swindle rightly feel cheated by the SEC’s ineptitude. The decision to allow David Becker to work on the Madoff case, despite family earnings from a Madoff account, necessitates answers,” said Issa. “This subpoena should shed light on the nature of Becker’s financial conflict of interest as well as his role in deciding the valuation method for accounts held by Madoff clients.”

Chairman Issa has requested the following documents:

  • All documents referring to or relating to any account with Bernard L. Madoff Investment Securities LLC (“BLMIS”) owned by, operated by, or opened on behalf of, Dorothy Becker, David M. Becker, Daniel I. Becker, David M. Becker, or the husband of Dorothy Becker , including but not limited to BLMIS Account No. 1B0270 and BLMIS Account No. 1B102030.
  • All communications between the Trustee and the Securities and Exchange Commission referring or relating to the determination of “net equity” under the Securities Investor Protection Act.
  • All communications between the Trustee and Securities and Exchange Commission referring or relating to adversary proceedings brought by Irving Picard for avoidance of fraudulent conveyances in connection with transfers of property by BLMIS.

As the Madoff trustee, Picard is currently suing David Becker and his brothers for approximately $1.5 million in profits they took from the Madoff ponzi scheme that the trustee believes should be returned to other victims.

The deadline for complying with the subpoena is 5:00 pm on March 22, 2011.

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