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US seeks to revoke Madoff bail

(Agencies)
Updated: 2009-01-06 07:40

NEW YORK -- US prosecutors asked a judge to revoke the bail terms for alleged swindler Bernard Madoff and detain him on Monday, claiming he was a flight risk.

Bernard Madoff is escorted from Federal Court in New York January 5, 2009. [Agencies]

But the US magistrate judge withheld his decision and requested both sides to present additional written materials this week.

Madoff, a former chairman of the Nasdaq stock market, was arrested and charged on December 11 with securities fraud in a sweeping "Ponzi" scheme that cost investors around the world billions of dollars.

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He is under house arrest in his Manhattan apartment but appeared on Monday in the Manhattan courthouse for the hearing. Dressed in a charcoal gray suit, Madoff sat in the courtroom chatting quietly with his attorneys before the hearing began.

Madoff, 70, is accused of running a scheme over many years that bilked the wealthy, banks, charities and funds all over the world. The Ponzi scheme purportedly run by Madoff is one in which early investors are paid off with the money of new clients.

No one else has been charged. Authorities say he has admitted the fraud.

US Attorney Marc Litt said in court the case against Madoff is strong "and continues to grow stronger," adding the current bail conditions were insufficient to protect the community.

Madoff had been transferring personal assets, including jewelry and valuables, to third parties, Litt said.

Ira Sorkin, Madoff's lawyer, said his client was not a flight risk and that Madoff and his wife were trying to have the valuables returned.

A US magistrate judge tightened Madoff's bail conditions on December 19, putting him under 24-hour detention in his Manhattan apartment "to prevent harm or flight." He also extended court orders freezing Madoff's assets and the appointment of a receiver for his firm.

The bail conditions also called for round-the-clock monitoring at the defendant's building, including video monitoring of the defendant's apartment doors.

The order replaced an earlier night curfew as part of Madoff's release on $10 million bail.

Madoff and his wife, Ruth, have surrendered their passports to authorities and pledged three properties worth millions of dollars as collateral.