Judge allows money manager Madoff to remain free
The decision is sure to outrage investors who have been clamoring for Madoff to be sent to jail for allegedly carrying out the largest financial fraud in history a fraud that authorities say he described as a Ponzi scheme.
Prosecutors said the gifts were grounds to have his bail revoked because what's left of Madoff's assets will have to be returned to burned investors.
But the judge not swayed by the their arguments that Madoff represents an economic danger to the community because of the size of the fraud and his actions in sending the gifts.
"The government fails to provide sufficient evidence that any potential future dissemination of Madoff's assets would rise to the level of an economic harm," Magistrate Judge Ronald L. Ellis wrote.
Ellis also acknowledged the widespread public interest in Madoff's bail and the case, but said that proper legal considerations must take precedence.
"The legal issue before the court is whether the government has carried its burden of demonstrating that no condition or combination of conditions can be set that will reasonably assure Madoff's appearance and protect the community from danger," the ruling said,
In a separate decision, another magistrate signed off on an extension for the deadline to indict Madoff until Feb. 11. That means Madoff will remain free for at least another month, provided he does not violate the terms of his bail during that time.
A bankruptcy judge, meanwhile, said a trustee can issue subpoenas to investigate the flow of money in an investment fund run by Madoff.
U.S. Bankruptcy Judge Burton Lifland gave permission to the trustee, Irving Picard, to subpoena witnesses, including directors and officers of Bernard L. Madoff Investment Securities LLC. The trustee is overseeing the liquidation of the fund for the bankruptcy court.
There were no objections to the trustee's request.
The anxiously awaited bail decision does put more restrictions on Madoff, including forcing him to come up with a list of items at his apartment and allowing a security firm to check on the items. The security company will also be allowed to search all outgoing mail from Madoff to ensure that no property has been transferred.
Defense lawyer Ira Sorkin says the "the opinion speaks for itself and we intend to comply with the judge's order." Sorkin has said the gifts were an innocent mistake and said he is neither a danger to the community nor a threat to flee.
Yusill Scribner, a spokeswoman for prosecutors, said the government had no comment on the ruling.
Recent comments
The judge is simply enforcing the law as it exists. The crime allows...
Dave | Jan. 13, 2009 at 8:25 a.m.
What judicial hypocrisy! It certainly pays to be white, jewish,...
Tim | Jan. 12, 2009 at 2:07 p.m.
I am surprised and I do not consider myself naive
but as my 97...
rdonovan@msn.com | Jan. 12, 2009 at 1:21 p.m.
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