Litt said the government has taken possession of the most of the items, including the most expensive ones.

The issue of Madoff's assets is an important part of the investigation because authorities are trying to determine what is left and use it as restitution for burned investors.

The defense lawyer offered to let the government take custody of any jewelry or other small assets belonging to Madoff, an offer that Litt said would be impossible to carry out because there might be valuable small assets such as paintings and sculptures "scattered around the country and the world."

The effort by the Madoffs to send property to family and friends was not the first time that Madoff sought to help out members of his inner-circle since his alleged scheme unraveled.

The FBI said in a complaint at the time of Madoff's arrest that he had sought to distribute $200 million to $300 million he had left to certain selected employees, family and friends.

The prosecutor urged the magistrate judge to consider the "totality of actions" as Madoff carried out a sweeping fraud.

"Mr. Madoff has lied to many people over the years," Litt said as he alleged that the mailing of assets after his arrest made a lie of his promise to the courts not to disturb his assets.

The prosecutor told the judge the case against Madoff "is strong and getting stronger."

Madoff went to court in a gray suit with a white shirt and a black tie. As the magistrate judge entered court, Madoff straightened his suit coat and tie. He looked forward throughout the proceeding.

Afterward, court officers cleared the way for him as he hurried to a car in front of the courthouse. He did not reply to questions shouted at him by reporters.

He has not yet entered a plea in the case because an indictment had not been returned, though it was due within a week.

In court, the prosecutor had argued that Madoff obstructed justice by trying to dissipate assets and said that he was a danger to the community because he was liquidating assets needed by his investors.

The judge said he was concerned whether any previous cases have claimed that potential economic harm represented a danger to the community.

"In some instances, economic danger may be more severe than physical danger," he said.