Legal News

Gov?t: Protection from Economic Harm Valid Objective of Madoff?s Bail

By Dan Slater

Bernard Madoff leaves U.S. District Court in Manhattan after a bail hearing in New York, Jan. 5, 2009. (AP/Kathy Willens)

One of the more headline-grabbing developments in the Bernie Madoff scandal was Monday’s revelation that Madoff violated bail conditions by mailing assets. AUSA Marc Litt requested that Madoff be jailed without bail.

Yesterday, Litt filed this brief with Magistrate Judge Ronald L. Ellis, arguing that the applicable law requires Madoff’s detention.

The changed circumstance, Litt argues, is the fact that Madoff and his wife sent multiple packages containing valuables to relatives and others.

Specifically, the defendants sent a package containing a total of approximately 13 watches, one diamond necklace, an emerald ring, and two sets of cufflinks. The Government has been informed that that the value of those items could exceed $1 million. Two other packages — containing a diamond bracelet, a gold watch, a diamond Cartier watch, a diamond Tiffany watch, four diamond brooches, a jade necklace, and other assorted jewelry — also were sent to relatives. . . the defendant and/or his wife sent at least two additional packages (contents unknown) to the defendant’s brother and an unidentified couple in Florida.

Litt argues that the legislative history of the Bail Reform Act of 1984 makes clear that Congress intended that the “safety of the community” language in Section 3142 was expected to be given a broad construction. He says courts have construed the statute to mean that protection of the community from economic harm is a valid objective of bail conditions.

LBers, what do you think?

Full post as published by Law Blog - WSJ.com on January 07, 2009 (boomark / email).