 Madoff agrees to have assets frozen
(China Daily)
Updated: 2009-02-11 08:05
Accused Wall Street swindler Bernard Madoff has agreed to a permanent freeze on his assets without admitting or denying fraud charges in a civil case against him, a US regulator said on Monday. The US Securities and Exchange Commission said in a court filing that the amount of fines and disgorgement will be decided later against Madoff, the former Nasdaq stock market chairman whose assets were temporarily frozen by court order two months ago. The development is an indication that Madoff may settle the civil case, according to lawyers who are not involved in the matter. Madoff has not appeared in court to formally answer civil or criminal charges. His lawyers have said Madoff is cooperating with investigators, and a hearing is tentatively scheduled for today in the criminal case. But it could be postponed by agreement between prosecutors and Madoff's lawyers. It may take several months at least for the initial claims of investors to be fulfilled, according to lawyers overseeing the liquidation of Madoff's firm. Madoff is facing criminal and civil charges in US District Court in Manhattan after authorities said in December last year that he admitted to running a Ponzi scheme over many years with losses of $50 billion. He is under house arrest and 24-hour surveillance in his luxury Manhattan penthouse apartment following his arrest for what authorities have called the biggest Ponzi scheme in history. In a Ponzi scheme, early investors are paid with the principal received from newer clients. Madoff's lawyer Ira Sorkin said the SEC filing "means he has been enjoined from engaging in any violations of anti-fraud regulations." The SEC has been severely criticized by members of Congress and commentators for failing to catch Madoff despite receiving tips. The agency's top enforcement official, Linda Thomsen, is resigning less than a week after a congressional panel chastised her for failing to follow up on those tips. The SEC said in Monday's court filing that "defendant Madoff will be precluded from arguing that he did not violate the federal securities laws as alleged in the complaint." One white-collar defense attorney not involved in the case said Monday's filing indicates Madoff will settle the civil case. Agencies (China Daily 02/11/2009 page17) |
