Madoff Remains Free Until Trial, For Now

January 5, 2009 9:29 p.m. EST

New York, NY (AHN) - Bernard Madoff will remain free while a federal judge considers a request by prosecutors to send him to jail for violating orders not to touch his assets.

Madoff, 70, reportedly mailed $1 million-worth of watches, cuff links and jewelry to close relatives. The prosecution says the mailing of those items should allow for the revocation of bail since attempting to dissipate assets is obstruction of justice.

Ira Sorkin, Madoff's lawyer said the mailing did not violate the ordered asset freeze and that Madoff and his wife sought the return of the goods once they found out they were not allowed to be sent.

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

The judge ordered both sides to submit written arguments by Jan. 7, at which time a ruling will be made.

Madoff is currently out on $10 billion bail while under house arrest as he awaits trialfor securities fraud in what has been said to be a $50 million Ponzi scheme.