NEW YORK, Jan. 14, 2009
Feds Take Second Crack At Jailing Madoff
Prosecutors Appealing Court Ruling That Allowed Madoff To Remain Under "Penthouse" Arrest
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Prosecutors say Bernard Madoff presents "grave" economic harm to the community because of the wide range of his alleged fraud, and they cited the attempt to distribute some of his wealth in the past month as proof of the damage he could do. (AP Photo)
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Play CBS Video Video Madoff Still A Free Man A NY judge allowed Bernard Madoff to remain under house arrest after rejecting an attempt by prosecutors to jail him for attempting to send money to his friends and family. Randall Pinkston reports.
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Video Madoff's Judgment Day A New York judge is set to decide if Bernard Madoff should have his bail revoked. As Randall Pinkston reports, new reports have surfaced that his own family are among the victims.
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Video Madoff's Hidden Assets Prosecutors are trying to have Bernard Madoff's bail revoked after investigators found 100 signed checks totaling more than $173 million ready to be sent to his loved ones. Randall Pinkston reports.
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- Fund Manager Tied To Madoff Faces Charges
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- Sources Implicate Madoff Wife
- Authorities Seize Madoff's Fla. Mansion
- Judge Freezes Assets Of Madoff Relatives
- Lawyer: Madoff Has $1 Billion In Assets
- Madoff To Remain Locked Up
- Madoff Accountant Free On $2.5M Bail
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- Government Pursues Ruth Madoff's Assets
Videos:
Prosecutors are appealing a magistrate judge's ruling on Monday that Madoff could remain free in his $7 million penthouse despite government claims he was trying to send valuable jewelry and watches to close relatives and friends.
But the defense said the government is using "inflammatory rhetoric and hyperbole" to make a flimsy argument. They said the gifts were an innocent mistake.
Madoff did not speak as he was ushered into the courthouse Wednesday. Metal barricades held back a large group of photographers.
Monday's ruling further outraged investors who have been clamoring for Madoff to be sent to jail for allegedly carrying out the largest financial fraud in history. They find it shocking that Madoff is free on bail, despite distributing assets that could be used to help repay investors who lost billions.
Stephen A. Weiss, a lawyer for several dozen Madoff investors, said there "are people on the street who are very unhappy" with the ruling.
"There is a thirst for blood that transcends just those who have been victimized. There is a feeling ... that folks like Bernard Madoff get a different brand of justice than the guy in the street," Weiss said.
"He's scamming the government, he's scamming the judge," said investor Larry Leif after Monday's ruling. "The only way you're going to stop Mr. Madoff is to put him in jail, just like any other criminal."
In his 22-page order, Judge Ronald Ellis acknowledged investor outrage, but said the government did not "demonstrate either a serious risk of flight or serious risk of obstruction of justice."
While Madoff remains out of jail, the judge tightened conditions on his bail agreement:
Madoff is barred from leaving his apartment except for court appearances, reported CBS News correspondent Randall Pinkston. And that could be mid-February, when the U.S. Attorney is scheduled to file his indictment.
Defense lawyer Ira Sorkin says the bail 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.Read the judge's decision allowing Madoff to remain free on bail
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 conditions of the bail.
The judge also noted that it is quite common for defendants to be granted bail, even those charged with violent offense.
"Even for the most serious offense, more than half of all defendants are released on bail conditions, including 51 percent for violent offenses, 57 percent for property offenses and 73 percent for fraud."
In another development, a bankruptcy judge ruled that a trustee can issue subpoenas to investigate the flow of money in the investment fund run by Madoff. U.S. Bankruptcy Judge Burton Lifland gave permission to the trustee, Irving Picard, to subpoena witnesses. The trustee is overseeing the liquidation of the fund for the bankruptcy court.
Last week, prosecutors said investigators found 100 signed checks worth $173 million in Madoff's office desk that he was ready to send out to his closest family and friends at the time of his arrest last month in what is alleged to be largest financial fraud in history.
Prosecutors said the checks were further evidence that he wants to keep his assets away from burned investors in a more than $50 billion fraud.
© MMIX, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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- End the Inequitable Two-Tier Justice System. Madoff is accused of fraud to the tune of $50 billion. The body of evidence is enormous. It''s a slam-dunk ''Lock & Load'' case. Madoff''s bail is only $10 million and the bail he put up is "delusional" bail because none of it belongs to Madoff. It belongs to his defrauded victims. Madoff is using victim''s money to pay for legal fees as well as the bail. In blue collar drug cases the accused is never, ever allowed to use their ill-gotten gains to pay for bail or for legal fees. That money is always, always frozen and rendered unusable. Madoff has absolutely no reason NOT TO FLEE, since he stands to lose nothing if he does. The judge''s ruling allowing Madoff to stay out of jail shows just how far and deep this fraudulent two-tier justice system really is (Justice for the Rich versus Justice for the Poor). Another judge on the take. Another fraud in the legal system. And we wonder why the blue-blood Wall-Street crimes just keep rolling in. In a Two-Tiered Justice System there is absolutely NO deterent against crimes by the Rich & Famous. Only incentives.
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- Why is appealing a court ruling an option? This Man should be in Jail. He is a Law Breaker, Life Destroyer. And He is Free? America and her Double Standards.......
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- ["Thirst for blood" and the "feeling" that Madoff is getting favorable treatment are completely worthless as legal arguments, as Mr. Weiss should know. Judge Ellis'''' decision to grant bail will surely be upheld, unless Madoff does something quite stupid. The government is already delaying his indictment, because they want his cooperation in getting as much money back as is possible. Don''''t be fooled by "showboating" prosecutors with political ambition.]
[Posted by secundus2 at 04:13 PM : Jan 14, 2009]
he''s obstructing justice by trying to hide his assets ... which he was caught doing since he''s been arrested on the initial charges. this alone should be enough to deny him bail. - Reply to this comment
- "Thirst for blood" and the "feeling" that Madoff is getting favorable treatment are completely worthless as legal arguments, as Mr. Weiss should know. Judge Ellis'' decision to grant bail will surely be upheld, unless Madoff does something quite stupid. The government is already delaying his indictment, because they want his cooperation in getting as much money back as is possible. Don''t be fooled by "showboating" prosecutors with political ambition.
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- "There is a thirst for blood that transcends just those who have been victimized. There is a feeling ... that folks like Bernard Madoff get a different brand of justice than the guy in the street," Weiss said.
That''s how I feel. Seen it to many times. - Reply to this comment
- so, if attempting to distribute his assets to protect his fortune isn''t considered obstruction of justice, I wonder what would be. But hey, he''s not a risk to flee to have no worries. The guy is a natural scam artist and is still capable of damage; too bad the judicial system doesn''t see beyond high powered law-liars.
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- Here''s what to do take this Madoff guy put him on the playing field at Yankee Stadium with all the people that got screw by him and let those people extract justice.
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- Here''s what to do take this Madoff guy put him on the playing field at Yankee Stadium with all the people that got screw by him and let those people extract justice.
- Reply to this comment
- Here''s what to do take this Madoff guy put him on the playing field at Yankee Stadium with all the people that got screw by him and let those people extract justice.
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- [There is a thirst for blood that transcends just those who have been victimized. There is a feeling ... that folks like Bernard Madoff get a different brand of justice than the guy in the street," Weiss said. ]
as was stated in an old ''boston'' song ... it''s ''more than a feeling'' ... it''s the way it really works.
having money makes everything easier ... including hiring a high powered attorney to defend yourself against serious charges.
if justice is defined as ''making restitution to those who lost'' ... then how is trying to distribute $150 million in personal assets not obstruction of justice in a case where he''s being accused of scamming investors? - Reply to this comment
- Looks like he was hiding enough under the mattress to bribe the judge . . . . .. .
Remember what happened to Marie Antoinette when she said the starving peasants should eat cake . . . .
If he doesn''t want to be in jail then they should take him to a homeless shelter, or just put him out on the street with nothing but his clothes somewhere in South Bronx. - Reply to this comment
- The greedy people who lost their greedy little money because they have nothing but greed for more money than is realistic in this economy now want to jail their buddy for losing their greedy little money all before even having a trial...
Boo Hoo..
They all knew that what returns they were getting on their money was too good to be true, now they want everyone else to pay for their greedy little mistakes...
I have no pitty for them at all... Greed is no good. - Reply to this comment
Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
