Jan 7, 2009 8:28 am US/Eastern
Madoff Defense To Answer Call To Jail Financier
NEW YORK (CBS/AP) ―
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Bernard Madoff, 76, may have scammed the many investors who trusted him with their money out of $50 billion.
AP
A defense lawyer for Bernard Madoff is expected to submit written arguments Wednesday to a judge who is probing whether the disgraced Wall Street financier should be jailed before trial.
The judge said he wants to know whether the ability to commit economic harm can make someone like Madoff a danger to others.
Prosecutors have asked for Madoff's immediate jailing, arguing that he and his wife violated a court order by sending gifts to relatives and friends. A defense lawyer says Madoff's wife, who was not subject to the court order, sent the valuables.
Madoff was arrested Dec. 11 on a securities fraud charge after the FBI said he confessed to swindling investors. Authorities say he told his sons he ran a $50 billion Ponzi scheme and had only a few hundred million dollars left.
He has been under house arrest at his multimillion-dollar Manhattan
penthouse with an electronic bracelet and 24-hour guard.
Prosecutors gave Magistrate Judge Ronald L. Ellis their arguments in a letter on Tuesday, but it was not immediately made available to the public.
Madoff's defense lawyer was to file his arguments Wednesday.
The judge asked lawyers on both sides Monday to research whether Congress had established over the years whether economic harm can represent a danger to the community.
He said he wanted to know if there was a recent law that would indicate if a person could be considered a threat to a community by his potential to inflict economic harm.
"Let's put it all out there for me to review," he said.
Prosecutors had asked Monday for Madoff's immediate jailing, saying he and his wife violated a court order by sending jewelry and antique watches worth more than $1 million to relatives and friends over the holidays.
Assistant U.S. Attorney Marc Litt said the action violated a freeze of Madoff's assets and demonstrated a danger to investors that he might dissipate assets.
Madoff's lawyer, Ira Sorkin, argued on Monday that expensive jewelry and watches were sent by Madoff's wife, who was not subject to a court order when she mailed them Dec. 24.
He said other heirlooms, including $25 cufflinks and a $200 pair of mittens, were also sent through the post office to his brother, a son and daughter-in-law and a New York couple vacationing in Florida. He said the Madoffs sought the immediate return of the items when they were told they shouldn't have sent them.
"If he was found to be selling narcotics, if it's found that he threatened somebody, if it's found that he was fleeing the community, then I think your honor should consider new bail conditions," Sorkin told the judge Monday. "But that's not the case here."
Attorney Jerry Reisman, representing 13 Madoff investors, said he believes Madoff should be sent to jail. He said his clients are "astounded" and "infuriated" that Madoff remains out on bail and suspect he's still taking steps to hide his assets.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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