House Republicans demanding answers about SEC lawyer’s Madoff ties

The Republicans, including committee Chairman Spencer Bachus (R-Ala.), asked for details about Becker’s work at the SEC, and whether he had any interactions with Madoff or any financial experts that tried to tip the SEC off to Madoff’s scheme.

They also asked if Becker informed the SEC of the connection, or if he handled any legal matters tied to Madoff while at the agency. Becker’s last day at the agency is scheduled to be Friday, but he has said the move is completely unrelated.

The letter comes days after after the trustee charged with recovering funds tied to Madoff’s scam sued Becker in bankruptcy court, in an attempt to claw back fraudulent earnings made from Madoff investments. He alleged Becker’s parents earned $1.5 million in a Madoff account.

Becker reportedly served as heir and executor of his parents’ estate following his mother’s death in 2004, but has maintained he had no detailed knowledge of how his parents came to profit from a Madoff investment, according to Bloomberg.

Becker served as the SEC’s general counsel from 1999 to 2002, and returned to the position in 2009. The SEC said in a statement that he consulted with the agency’s ethics office shortly after coming back on board, and was told he did not need to recuse himself from Madoff matters. SEC spokesman John Nester said Becker is not aware of ever having met with Madoff.

Nonetheless, the news is unlikely to help the SEC win over any Republicans, who are pushing to slash the agency’s budget. In the spending package approved by the House earlier this month, the SEC’s budget would shrink to $1.069 billion, compared to 2010’s level of $1.118 billion. Republicans have repeatedly pointed to the SEC’s failure to sniff out Madoff as evidence the agency is ill-run and undeserving of more funds.

The lawmakers gave the SEC one week, until March 4, to respond.