Dec 17, 2008 12:09 pm US/Eastern
Who Will Vouch For Bernard Madoff?
Judge Sets Deadline On Disgraced Money Manager's Bond Terms
NEW YORK (CBS) ―
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The once-revered, now reviled Bernie Madoff has to meet certain conditions on his $10 million bond. (FIle)
CBS
A deadline has been set for the money manager accused of bilking investors out of billions. The once-revered, now reviled Bernie Madoff has to meet certain conditions on his $10 million bond.
At federal court in lower Manhattan, cameras and a throng of reporters were waiting for Madoff who now must provide four people to co-sign his $10 million dollar bond. He was given until Wednesday to get those signatures.
For Madoff, finding friends to vouch for him could be tough. A hearing had been scheduled for Wednesday in which he was required to find two additional co-signers to vouch for him.
But with the scandal swirling around Madoff, he was unable to find co-signers. So the judge modified the bail package, and gave lawyers until next Monday to come up with additional paperwork.
Madoff has already surrendered his passport, and now will be required to be at his Manhattan apartment from 7 p.m to 9 a.m.
The dirt continues to pile up on the disgraced money manager. Prosecutors claim Madoff has also swindled universities, including New York's Yeshiva University, which lost an estimated $100 million.
And they say he swindled individuals and charitable foundations of $50 billion.
Robert Crane runs the social justice charity called the JEHT Foundation that gave away up to $30 million a year. Its donors had invested with Madoff, Crane told CBS 2.
"We unfortunately have to go out of business at the end of January," he said. "It's horrible. I don't know how a man who does that sleeps at night."
Among charities allegedly fleeced, include one founded by publisher Mort Zuckerman. Movie director Steven Spielberg's charities were victims; a charity run by Ezra Merkin, the chairman of GMAC; and The Elie Wiesel Foundation for Humanity.
Some victims are smaller.
The Ramaz School on the Upper East Side had $6 million invested with Madoff.
Attorney Mark Mulholland, representing investors in a class action suit, believes there were some huge investors who successfully got out before the collapse. "Those multi-billion dollar withdrawals that did take place in a year or two leading up to the case will be a prime focus of our investigation," he said.
So while Madoff tries to round up what he needs to stay out on bond, investors are taking steps to try to recover whatever they can.
The FBI has set up a hotline for investors who believe that may have been victims of Madoff's scheme. That number is (212) 384-2359.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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