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Bernie Madoff’s Ponzi scheme is now the stuff of Wall Street legend. What’s less discussed are his ties to regulators. As the creator of Nasdaq, he was given a virtual free pass from the regulatory community – something he used to his advantage.

Now, it’s been revealed that a lawyer who provided advice on compensation for victims of the fraud has family members who inherited $2 million from a Madoff account.

The failure of SEC general counsel David Becker to recuse himself from the proceedings went against general Commission requirements to bar Madoff associates from working on the case.

The SEC’s report on the investigation shows Becker disclosed his association to SEC Chairman Mary Schapiro.

Originally published on Advisor.ca