Madoff still sleeping in New York luxury apartment

2009-01-12 20:31:26 (GMT) (JusticeNewsFlash.com - Government, Justice News Flash)

Lawyers for federal prosecution lose Madoff bail revocation hearing

Manhattan federal judge refuses to revoke Madoff’s bail.

JusticeNewsFlash.com–U.S. Federal District Court judge, in Manhattan, refused to revoke Bernard Madoff’s bail. On Monday, the federal magistrate refused the government’s request to revoke the high power financier’s bail. Madoff has been charged with operating a $50 billion dollar Ponzi scheme. Operating a Ponzi scheme is considered securities fraud and is a crime. Investors guilty of securities fraud can be charged in criminal and civil court for stealing from trusting consumers. The federal magistrate stated the government did not prove Madoff was a flight risk or a security risk.

U.S. federal prosecuting attorneys asked the court to revoke Madoff’s $10 million dollar bail after he violated the court ordered freezing of his financial accounts. The New York Times reports, Mr. Madoff found it necessary to mail over $1 million dollars in expensive jewelry and watches to family and friends on Christmas Eve. The government’s legal team contends this is a direct violation of the terms of his bail. The court directly barred Mr. and Mrs. Madoff from transferring any of their asset which includes giving gifts. The $10 million dollar bail was secured by homes which are listed in his wife’s name.

The government is requiring the Madoff and his wife to compile a list of all portable assets in their Manhattan apartment and give it to the prosecuting attorneys for the government. Mr. Madoff is instructed to remain in his apartment, with a personal electronic monitoring device, and secured by a private, 24 hour security team paid for by his wife. Mr. Madoff has been charged with securities fraud and has not been indicted by a grand jury as of Monday. The prosecuting attorneys are also asserting Madoff had planned to transfer $200 million to $300 million dollars of investors’ money to family and friends. The New York Times reported when authorities searched Madoff’s desk they found $173 million in signed checks awaiting to be mailed. Legal experts say transferring assets under the guise of gift giving and living expenses are common ploys of securities fraud criminals.

Financial experts continue to speculate Madoff’s Ponzi scheme is the largest in history and could total more than $50 billion dollars.

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