The inspector general of the Securities and Exchange Commission has asked the Justice Department to see investigate how a former top SEC official benefited financially from Bernard Madoff's Ponzi scheme and at the same time, violated conflict-of-interest laws in helping establish SEC policy.
The New York Times reveals how David M. Becker, the SEC's general counsel, went on to recommend how the scheme's victims would be compensated. That was despite his family's $2 million inheritance from a Madoff account.
The report on the SEC's web site looks at whether Becker committed two criminal conflict of interest offenses.
This has been going on for some time now. There were revelations that the SEC was on to it back in March. So why has the SEC decided to act now?
It might have something to do with the SEC proposing a rule to prohibit conflict of interest transactions which is the way Wall Street operates. After allowing Madoff to get away with his scheme for years, the SEC is now scrambling the moral high ground.