Parker Waichman LLP

Bernard Madoff Faces Possible Bail Revocation

The Bernard Madoff investment fraud scandal took an interesting turn yesterday, as federal prosecutors sought to have Madoff’s $10 million bail revoked.  Prosecutors sought the revocation after they learned that Madoff had mailed  “some very valuable jewelry” to his sons and brother after his assets were frozen in a civil lawsuit. Madoff has been under […]

The Bernard Madoff investment fraud scandal took an interesting turn yesterday, as federal prosecutors sought to have Madoff’s $10 million bail revoked.  Prosecutors sought the revocation after they learned that Madoff had mailed  “some very valuable jewelry” to his sons and brother after his assets were frozen in a civil lawsuit.

Madoff has been under house arrest since his December 11 arrest for securities fraud.  The 70-year-old Madoff – once a chairman of the Nasdaq stock exchange – is the founder and primary owner of Bernard L. Madoff Investment Securities LLC. The firm is primarily known for its business in market-making, or serving as the middleman between buyers and sellers of shares. However, Madoff also oversaw an investment-advisory business that managed money for high-net-worth individuals, hedge funds and other institutions.

According to the FBI complaint against Madoff, that business was largely a Ponzi scheme.  The FBI said Madoff  “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in losses of approximately billions of dollars.” Madoff reportedly told employees that his fraud could cost investors as much as $50 billion.

According to Bloomberg.com, Madoff’s lawyer said his sons reported to prosecutors that their father had sent them jewelry and other items in violation of a court order freezing his assets.  Some items were also sent to his brother.   Madoff’s lawyer insisted the items were merely “heirlooms” sent innocently to his sons and brother, Bloomberg said.

But prosecutors clearly disagree.  According to Bloomberg.com, U.S. Attorney Marc Litt said in court yesterday that “transfer of valuables is a “changed circumstance” that warranted the revocation of bail.”  He put the value of the items mailed by Madoff at around $1 million.

If Madoff’s bail is revoked, he would have to leave his posh Manhattan apartment for jail.

Meanwhile, the House Financial Services Committee held a hearing yesterday to address the Securities and Exchange Commission’s (SEC) apparent failure to detect Madoff’s decades-spanning fraud.  The Wall Street Journal reported yesterday that the SEC failed to spot the fraud, despite receiving numerous tips, and investigating Madoff eight times in the last 16 years.  Shortly after Madoff’s arrest, the SEC  launched its own internal investigation into how his alleged Ponzi scheme was  able to continue unchecked for so long.

According to CNN.com, H. David Kotz, the SEC’s inspector general, told Congress Monday that the investigation was ongoing. He added that his office planned to look at, among other things, complaints about Madoff’s activity and any other conflicts of interest between SEC officials, its staff and members of Madoff’s family.

In addition to hearing from SEC officials, the Committee took testimony from one of Madoff’s alleged victims.  What he had to say was often poignant. Allan Goldstein, a 76-year-old former textile salesman from upstate New York, told lawmaker his entire life savings, which was worth as much as $4.2 million just months ago, has vanished. According to CNN, Goldstein said he feared he and his wife might now face foreclosure on his home because of their resulting financial woes.

“We are not trust funds, hedge funds or banks,” said Goldstein. “We are ordinary people who are victims of an incomprehensible crime and who have had their lives turned upside down.”

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
Thanks to Jorge Peniche and Parker Waichman who were always aware of my case and that it was resolved in the best way without you I don't know what I would do, thank you
Jhonatan Romerozavaleta
a year ago
5 Star Reviews 150
You guys are the best lawyer institutions i have ever know thank you for helping me so much with my case ❤️
estarlin torres
9 months ago
5 Star Reviews 150
Michele josama at parker waichman is a wonderful and extremely polite person she has made my experience an easy and best experience ever I thank her from the bottom of my heart for all she has done. And I would highly recommend her to everyone I know. Parker waichman are extremely lucky to have her.
Maxine Fuentes
4 years ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038