Legal News

Madoff to Remain Free

By Dan Slater

The time is finally here. After a week of mulling whether mailing assets would land alleged Ponzi-schemer Bernie Madoff in jail — without bail — Magistrate Judge Ronald Ellis has resolved the issue.

Madoff will remain free pending trial. Click here for Judge Ellis’s order.

Judge Ellis, though he says that there is support “for considering economic harm in evaluating danger to the community under §3142 of the Bail Reform Act,” writes that, according to precedent, “the question appears to become one of propensity to commit further crimes, even if the resulting harm is solely economic.” Ellis says the government failed to provide sufficient evidence that any potential future dissemination of Madoff’s assets would rise to the level of an economic harm cognizable under §3142.

“The Government,” he concludes, “has failed to meet the additional burden of proving by clear and convincing evidence that there is no condition or combination of conditions that will reasonably prevent dissipation of such property. . . In fact, its failure to respond to the various additional bail conditions presented by Madoff further supports the weakness of its argument and its inability to show why Madoff’s detention would markedly ameliorate any alleged danger to the community that may result from dissipation of his assets.”

The judge ruled that Madoff can remain free but must give the government an inventory of his transportable valuables. A private security company will regularly check that the items are still in his possession.

Full post as published by Law Blog - WSJ.com on January 12, 2009 (boomark / email).