Federal prosecutors in Manhattan today asked a court to place alleged $50 billion Ponzi scheme operator Bernard Madoff in jail while they continue developing their case against him. Meanwhile, in Washington a Congressional panel was asking what the SEC could have done to prevent the scandal.<\/p>\n
A federal judge, perhaps predictably, questioned the validity of the government’s request to put Madoff in custody considering that Madoff’s current bail terms — home confinement in his posh Manhattan penthouse — had earlier been agreed upon by the government.<\/p>\n
A federal prosecutor argued that cufflinks, watches, and other personal property purportedly worth $1 million had been shipped by Madoff and his wife to relatives and friends during the holiday season, and that this constituted a violation of the terms of bail because the “dissipation of assets” could potentially harm investors seeking to recoup any of their losses from investing with Madoff.<\/p>\n