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Monday, January 05, 2009

Prosecutors: Madoff Violated Bail Conditions

Associated Press

Prosecutors on Monday said disgraced financier Bernard Madoff violated bail conditions by mailing about $1 million worth of jewelry and other assets to relatives and should be jailed without bail.

"The defendant's recent actions amount to obstruction of justice," Assistant U.S. Attorney Marc Litt told a judge at a hearing in federal court in Manhattan.

U.S. District Magistrate Ronald Ellis asked the lawyers to submit written arguments and said he would rule later.

Madoff's lawyer, Ira Sorkin, described the items as heirlooms that included cufflinks and antique watches. He said they were not significant assets. The items were sent to Madoff's children and to unidentified friends vacationing in Florida.
"We maintain it happened innocently," Sorkin said. "He's not a threat to the community and there's no danger he's going to flee."

The 70-year-old former Nasdaq stock market chairman was arrested Dec. 11 on securities fraud charges alleging he duped investors out of as much as $50 billion in a giant Ponzi scheme.

The prosecutor told the judge the case against Madoff "is strong and getting stronger."

Madoff, who owns yachts and mansions in New York's Hamptons