Feds Want Madoff In Jail, No Bail

Prosecutor Says Alleged Wall Street Scam Artist Mailed $1M In Jewelry To Relatives

(CBS/AP)  Prosecutors on Monday said disgraced financier Bernard Madoff violated bail conditions by mailing about $1 million worth of jewelry and other assets to relatives and should be jailed without bail.

"The defendant's recent actions amount to obstruction of justice," Assistant U.S. Attorney Marc Litt told a judge at a hearing in federal court in Manhattan.

U.S. District Magistrate Ronald Ellis asked the lawyers to submit written arguments and said he would rule later.

Madoff's lawyer, Ira Sorkin, described the items as heirlooms that included cufflinks and antique watches. He said they were not significant assets.

The items were sent to Madoff's children and to unidentified friends vacationing in Florida.

"We maintain it happened innocently," Sorkin said. "He's not a threat to the community and there's no danger he's going to flee."

Madoff later left the courthouse, riding away in a silver sedan while surrounded by a swarm of cameras, and returning to his Upper East Side apartment.

Meanwhile, Republican and Democratic House members said Monday that the alleged $50 billion fraud reflects deep, systemic problems at the U.S Securities and Exchange Commission.

Inspector General H. David Kotz said he is so concerned about the SEC's failure to uncover Madoff's alleged pyramid scheme that the IG is expanding the inquiry called for last month by SEC Chairman Christopher Cox. Cox had pushed the blame squarely onto the SEC's career staff for the failure to detect what Madoff was doing.

As CBS News investigative correspondent Sharyl Attkisson reports on the CBS Evening News, a crucial witness in helping determine how Madoff's scheme evaded regulators was a no-show: whistleblower Harry Markopolos.

Markopolos agreed to testify at first but ended up telling Congress he was too physically worn down and needs more time.

A derivatives expert, Markopolos first alerted officials nearly 10 years ago about what he saw as Madoff's scam. Then 2005 he sent this 19-page report to the SEC titled "the World's Largest Hedge Fund is a Fraud"

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Read more about Madoff whistleblower Harry Makopolis in the "Couric and Co." blog

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At the first congressional hearing on the scandal, Rep. Spencer Bachus, a Republican, called for Congress to create a regulatory structure "for the 21st century."

The House Financial Services Committee is trying to determine how, despite warnings back to at least 1999 to SEC staff members, Madoff continued to operate his alleged scheme.

"Clearly, our regulatory system ... failed miserably and we must rebuild it now," said Rep. Paul Kanjorski, D-Pa.

Kotz said that he will examine the operations of the SEC's enforcement and inspection divisions and will make recommendations, steps beyond what Cox had called for.

"I am a human face on this tragedy," said Allan Goldstein, a retired New York textile distributor who was expected to testify at Monday's hearing.

Goldstein, 76, said he lost his entire life savings with Madoff and had to cash in his life insurance policies to cover his mortgage.

"Everything I worked for over a 50-year career is gone," Goldstein said in an e-mail message from his attorney's firm. He said he had no reason to question the steady returns of 8 percent to 12 percent a year that Madoff's firm told him he was earning.

The Securities Investor Protection Corp. and the trustee handling the liquidation of Madoff's firm said Monday they mailed more than 8,000 claim forms to customers on Friday. Besides individuals, others who lost money were big hedge funds, international banks and charities.

Lawmakers jumped on the opportunity to show concern in the first congressional hearing since the scandal broke with Madoff's arrest on Dec. 11.

Rep. Brad Sherman, a Democrat, insisted that all five SEC commissioners should tender their resignations to President-elect Barack Obama.

Republicans warned against rushing to new regulation as a response to the SEC breakdown.

"While the failures of regulatory and private-sector due diligence exposed by the Madoff matter are obvious, they do not lead me to conclude at this stage of the inquiry that what is needed are broad new legislative or regulatory mandates on the rest of the securities industry," said Bachus, the senior Republican on the panel.

"What we may have in the Madoff case is not necessarily a lack of enforcement and oversight tools, but a failure to use them," he said.

The Madoff scandal allegedly involves a pyramid scheme, in which people are persuaded to invest in a fraudulent operation. The early investors are paid their returns out of money put in by later investors.

[johngress]

Now all that needs to happen is to fake a hart attack feed it to the media, and then quietly sneak out of the country to Brazil and live scott free on the money you skimmed off the top.
Posted by QuapawSix

-------------------------
Probably close. Probably more like a Godfather II scenario. Hyman Roth couldn''''t be prosecuted because he was too ill. ("....he''''s been dying of the same heart attack fo the last 10 years) He''''ll then do like Roth and go off the Israel, (where he won''''t be deported back to the US face trial), to spend his last few days as a retired businessman in the land of his fore-fathers)

Yeah, that''''s the ticket.




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Posted by spiritwalk at 08:42 AM : Jan 06, 2009


Makes you wonder if Ken Lay (Enron) is in South America somewhere after dying from a heart attack. I hear the plastic surgeons are very good down there.

[donevis-2009]

%u2013 Strange how these symbols and digits show up in some of the post on this sight. Most of the time they appear after 10 min of the original post time.

[hatesthecolt]

donevis, Feith and Wolfowitz in particular are dangerous idealogues. They were neck deep in the decision to go to Iraq not to mention other activities that will never come to light probably. They probably ought to be in jail.

[donevis-2009]

cont)
Principal Deputy Assistant Secretary - Christopher Gersten
Assistant Secretary of State - Lincoln Bloomfield
Deputy Assistant to the President - Jay Lefkowitz
White House Political Director - Ken Melman
National Security Study Group - Edward Luttwak
Pentagon Defense Policy Board - Kenneth Adelman
Defense Intelligence Agency Analyst (Former) - Lawrence (Larry) Franklin
National Security Council Advisor - Robert Satloff
President Export-Import Bank U.S. - Mel Sembler
Deputy Assistant Secretary, Administration for Children and Families - Christopher Gersten
Assistant Secretary of Housing and Urban Development for Public Affairs
- Mark Weinberger
White House Speechwriter - David Frum
White House Spokesman (Former) - Ari Fleischer
Pentagon Defense Policy Board - Henry Kissinger
Deputy Secretary of Commerce - Samuel Bodman
Under Secretary of State for Management - Bonnie Cohen
Director of Foreign Service Institute - Ruth Davis

Some of the people on this list are contesting being included., however if 10% of this list prove not to be, it still a large area of concern.

[donevis-2009]

List of Our Government officials with duel citizenships %u2013 Israeli/ USA

Attorney General - Michael Mukasey
Head of Homeland Security - Michael Chertoff
Chairman Pentagon Defense Policy Board - Richard Perle
Deputy Defense Secretary (Former) - Paul Wolfowitz
Under Secretary of Defense - Douglas Feith
National Security Council Advisor - Elliott Abrams
Vice President Cheneys Chief of Staff (Former) %u2013 %u201CScooter%u201D Libby
White House Deputy Chief of Staff - Joshua Bolten
Under Secretary of State for Political Affairs - Marc Grossman
Director of Policy Planning at the State Department - Richard Haass
U.S. Trade Representative (Cabinet-level Position) - Robert Zoellick
Pentagon Defense Policy Board - James Schlesinger
UN Representative (Former) - John Bolton
Under Secretary for Arms Control - David Wurmser
Pentagon Defense Policy Board - Eliot Cohen
Senior Advisor to the President - Steve Goldsmith
(cont)

[mswolfestock]

They need to treat him just like a busted drug dealer --

PUT HIM IN JAIL, THEN TAKE EVERY FREAKING THING HE OWNS AND SELL IT. GIVE THE PROCEEDS TO THE VICTIMS. THEN LET HIM ROT IN JAIL.

[debie_0202]

He should be in prison! It if was a little guy doing what he has done, they would have tossed them in and thrown away the key! The more mone you have the more powerful you are and the more you get by with!

[zzy-izzy]

I hope the family jewels become crushed nuts before long maby this will take the smirk off his face he needs to go to jail with "old gut wrench" for a while

[jonsid2]

At least, being a Jew himself, he was ripping off mostly other Jews. If he were a Christian ripping off Jews, he would have been castrated by now. Mr. Goldstein in the story above, was smiling gleefully all the way to the bank while he was earning 8 to 12 percent on his money, while other investors in the real world were earning far less. Do you think he didn''t know there might have been something going on to produce these profits while the rest of the investment world was tanking?

[zzy-izzy]

The SCC leadership is in just as deep as he is they may have gotten a lot of money to look the other way if proven they have then they all need to go to jail not the country club setting but to jail in with the regular population and maby they can become some big boys ***

[hatesthecolt]

charlieot Good point! I guess that''s why they are saying he violated the "spirit" of the bail agreement. am sure they are completely p!$$ed off that he is doing this, but I am not sure it''s a basis for jailing him again, although I do see his lawyer is treating this as if it is a legitimate charge ("it happened innocently"). Will be interesting to see what the judge does with it.

[spiritwalk]

Now all that needs to happen is to fake a hart attack feed it to the media, and then quietly sneak out of the country to Brazil and live scott free on the money you skimmed off the top.
Posted by QuapawSix

-------------------------
Probably close. Probably more like a Godfather II scenario. Hyman Roth couldn''t be prosecuted because he was too ill. ("....he''s been dying of the same heart attack fo the last 10 years) He''ll then do like Roth and go off the Israel, (where he won''t be deported back to the US face trial), to spend his last few days as a retired businessman in the land of his fore-fathers)

Yeah, that''s the ticket.

[charlieot]

Interesting how people miss gist of articles such as these. The article has nothing to do with guilt or innocence, Mr. Madoff''s political beliefs or conservative vs. liberal policies.
The article''s point is that the U.S. Attorney''s office (the prosecution) believes that Mr. Madoff violated the conditions of his bail agreement, in general, an agreement made to ensure the presence of a defendant at court hearings. Based on that belief, the prosecution believes that Mr. Madoff''s bail agreement should be rescinded and he be returned to custody pending his court appearances. Period. End of Sentence.

The latest bail agreement (from Google):
http://graphics8.nytimes.com/packages/pdf/business/17madoff.pdf

Based on this, I can see no evidence that Mr. Madoff violated the agreement. If someone has evidence otherwise, please post.

[quapawsix]

Now all that needs to happen is to fake a hart attack feed it to the media, and then quietly sneak out of the country to Brazil and live scott free on the money you skimmed off the top.

[excoachken]

That will teach him to stop stealing from the RICH. If he just ripped off the middle class or found a new way to exploit the poor, he would have earned the Presidential Medal of Freedom and Bush would be throwing him a party in the Blair House.

[babooph]

He knows too much,expect a slap on the wrist

[govtguy]

Odd that Madoff is still free as a bird. Obviously he has something on the DoJ and the Fed AG office that allows him to thumb his nose and bare his *** at that them. Anyone else in the world would have been in shackles immediately. Betcha he heads off-shore to avoid prosecution (or persecution) by those he ripped off. Watta guy!

[spiritwalk]

The posted list is of Duel Citizens Israel/USA
Posted by donevis at 10:55 PM
Very, VERY interesting.
Even more interesting is that the media
sees NO story in the list.
...............

Maybe this is not related, but as far as the media is concerned, CNN has been running commercials asking for donations to be sent to Israel to help pay for this attack in Gaza. Yet I don''t see them running commercials asking for donations to help the injured Palsetinian civilians. They do run commercilas asking for donations to the Red Cross to help the injured, but the Red Cross sends the money to Israel not Gaza. The Red Crescent is the agency that aids the arab world and they are not two parts of the same organization.

That is perhaps the irony of Madoff''s theft. If his scheme hadn''t fallen apart when it did it would be funneling money to support Israel''s attack right now.

[sleepyric]

the guy definetly needs to be in a cage. That''ll wipe that smirk off his mug.

[donevis-2009]

The posted list is of Duel Citizens Israel/USA
Posted by donevis at 10:55 PM


Very, VERY interesting.
Even more interesting is that the media
sees NO story in the list.
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Posted by rushlimpdrug at 07:06 AM : Jan 06, 2009
More than likley the media is ignoring this list because the owners of the media companies are in bed with these people. Hard to come up with other explainations other than pay-offs under the table. There seems to be an vast amount of information being kept from us lately and its becoming very uncomfortable