Judge Allows Madoff to Stay Free on Bail

By Larry Neumeister

NEW YORK -- A judge allowed disgraced money manager Bernard Madoff to remain free on bail Monday, rejecting an attempt by prosecutors to send him to jail for mailing more than $1 million in jewelry to family and friends over the holidays.

The decision is sure to outrage investors who have been clamoring for Madoff to be sent to jail for allegedly carrying out the largest financial fraud in history.

Prosecutors said the gifts were grounds to have his bail revoked because what's left of Madoff's assets will have to be returned to burned investors.

(Photo gallery: The Madoff Mess )

But the judge not swayed by their arguments that Madoff represents an economic danger to the community because of the size of the fraud and his actions in sending the gifts. Judges in bail decisions normally consider two main factors: whether the defendant is a flight risk or a danger to the community.

"The government fails to provide sufficient evidence that any potential future dissemination of Madoff's assets would rise to the level of an economic harm," Magistrate Judge Ronald L. Ellis wrote.

The anxiously awaited decision does put more restrictions on Madoff, including forcing him to come up with a list of items at his apartment and allowing a security firm to check on the items. The security company will also be allowed to search all outgoing mail from Madoff to ensure that no property has been transferred.

Defense lawyer Ira Sorkin says the "the opinion speaks for itself and we intend to comply with the judge's order." Sorkin has said the gifts were an innocent mistake and said he is neither a danger to the community nor a threat to flee.

Authorities say Madoff has described his activities as a $50 billion Ponzi scheme.

Are you happy with your stock broker?
	Yes. The market is too dangerous without help. Yes. But I wonder sometimes what I'm paying for. No. I'm going to start handling my own investments. No. I put my money in a federally insured CD.

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