US prosecutor demands Madoff be jailed until trial

Published on Tuesday 6 January 2009 20:17

A US prosecutor demanded that alleged Wall Street fraudster Bernard Madoff be jailed until his trial, saying he broke his bail conditions by sending watches, jewellery, cufflinks and mittens worth more than $1 million (£680,000) to relatives and friends.

"The defendant's recent actions amount to obstruction of justice," assistant US attorney Marc Litt told Judge Ronald Ellis at a bail hearing in New York.

Madoff, a former Nasdaq stock market chairman, was arrested on 11 December on charges alleging he duped investors out of as much as $50 billion in a giant pyramid scheme.

The judge ordered both sides to submit written arguments this week and said he would rule later. But Madoff's lawyer, Ira Sorkin, called it an innocent mistake.

Madoff was released without restrictions after his arrest, angering critics who thought it was unfair that a man accused of such a large fraud could walk the streets.

Prosecutors later tightened conditions of his bail to the point that Madoff is now under constant surveillance and confined to his Manhattan penthouse around the clock.

The prosecutor urged the judge to consider the "totality of actions".

"Mr Madoff has lied to many people over the years," Litt said.

Madoff has not yet entered a plea in the case.