U.S. Prosecutors Seek To Have Bail Revoked For Accused Swindler Bernie Madoff

New York, NY (AHN) - U.S. prosecutors have asked a judge to jail accused swindler Bernie Madoff after finding 100 checks for $173 million in his office that he had written out to relatives and had ready to mail.

Prosecutors say they found the checks after Madoff was arrested on Dec. 11 and charged with securities fraud in connection with an alleged $50 billion Ponzi scheme in his investment business.

Madoff,70, is out of jail on $10 million bail, and he is under 24-hour survielance on house arrest in his $7 million Manhattan penthouse apartment.

But he recently mailed $1 million worth of jewelry and watches to friends and relatives over the Christmas holidays, which prosecutors objected to because it dilutes assets available to make restitution to his alleged victims. At that time they also called for revoking his bail.

Madoff has denied any wrongdoing in mailing the jewelry, saying he and his wife merely wanted to distribute some sentimental pieces of jewelry acquired during 49 years of marriage to close family members and friends. Furthermore, Madoff says he is trying to retrive the $1 million worth of "sentimental" jewelry that the coupld mailed out.

The judge could take steps short of revoking bail and jailing Madoff. Among other things, the judge could put all of Madoff's jewelry in escrow, have guards search outgoing mail and appoint a "personal receiver" over all of Madoff's assets and property.

Madoff faces up to 20 years in prison and a $5 million fine if he is convicted.