Bernard Madoff Remains Free

Bernard Madoff, the man accused of stealing $50 billion from investors in the largest Ponzi scam ever has been allowed to remain free, at home under house arrest. Prosecutors filed a motion to have Madoff imprisoned after he mailed more than $1 million in jewelry and gifts to family and friends over the holidays. The prosecution insisted that this was in violation of his bail agreement as Bernard Madoff's assets are frozen.

New York City Magistrate Judge Ronald Ellis, in his written ruling today stated that Bernard Madoff is neither a flight risk nor a threat to the community. Therefore, he can remain under house arrest in his luxury Manhattan apartment.

Attorneys for Bernard Madoff argued that he did not realize that giving away personal items was in violation of the court order that froze his assets. In addition, it is argued that Madoff cannot pose a flight risk because he is under house arrest, wearing and ankle bracelet and is under 24-hour surveillance. This precludes him from leaving his apartment unnoticed let alone the country. The government failed to supply any evidence that Madoff poses an immediate threat to the community.

According to court papers, Bernard Madoff mailed a diamond necklace, a diamond bracelet, diamond brooches, and emerald ring, 2 sets of cufflinks, and 13 watches to close friends and family members over the holidays. Prosecutors charged that this violated a December 18, 2008 court order that froze all of Bernard Madoff's assets. They requested that Madoff's bail be revoked and that jail time should be served.

On December 12, 2008, Bernard Madoff was arrested for fraud. You can read more about this in my article Bernard Madoff and the 50 Billion Dollar Ponzi Scheme. Bail was set and Madoff put up personal properties in Palm Springs, Manhattan, and Montauk to secure his bail. In order to ensure that he would not pose a flight risk, Madoff is required to wear an electronic tracking ankle bracelet and he is under 24 hour surveillance. December 18, 2008 the court ruled Madoff's assets frozen. To date Bernard Madoff is the only one accused of running this Ponzi scheme. The government is looking into the possibility of other co-conspirators.

Bernard Madoff has not yet entered a plea or formally answered to any of the charges against him. Prosecution has until mid February to officially indict him. Today's ruling allows Madoff to remain at home until he enters a guilty plea or the government gets an indictment against him and it goes to trial.

Although the ruling has angered many of Bernard Madoff's investors, rights of the accused have to be considered. Madoff has not been indicted, prosecution failed to prove either a flight risk or endangerment to the community. Right now, all charges against Madoff are only alleged charges. No court has found him guilty of any crime. While this may anger many of us, our legal system has clear rules for rights of the accused and in this case, the court's ruling was justified. Save the punishment for the time when either Madoff enters a guilty plea or a court of law convicts him of a crime. House arrest combined with frozen assets seems appropriate for now.