UK Fraud Office Starts Madoff Investigation

A few days after his arrest and dramatic confession, Madoff voluntarily showed up at a closed-door meeting with regulators and FBI agents and began detailing how he pulled off his alleged scheme, officials familiar with the case said Wednesday.

But he has since stopped answering questions, hampering the investigation and killing any incentive for authorities to give him a break on bail, said the officials, who spoke on condition of anonymity because the probe was at a sensitive stage.

The issue of whether he should be allowed to remain under house arrest in his $7 million Manhattan penthouse made headlines this week when prosecutors made a sudden appearance in court and accused Madoff of violating his bail conditions by mailing jewelry and watches worth more than $1 million to relatives and friends.

Madoff's lawyer, Ira Sorkin, has confirmed that his client is not cooperating beyond agreeing to a freeze on his assets. He has argued that mailing the personal items was a harmless mistake, and that his client shouldn't be punished for it.

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AP reporters Tom Hays and Larry Neumeister in New York contributed to this report.