Federal Court rejects Madoff's bail plea cancellation

NEW YORK: A federal court has rejected the plea of prosecutors to cancel the $10 million bail of Bernard L Madoff, the accused of swindling investors of $50 million, and allowed him to remain under house arrest in his $7 million Penthouse, angering several of his clients.

This is the second time that prosecutors have failed to prove to the courts that Madoff is a flight risk and hence needs to be sent to jail, awaiting his trial.

Legal analysts said the anger of investors is understandable but the emotions have little effect on the court.

Madoff came to the court wearing a blue bullet proof vest over a dark grey suit, apparently fearing the wrath of the investors, some of whom had lost all their savings in the Ponzi scheme run by him under which he paid high interest rate to older investors from the money he got from new clients.

He took off the vest in the court but wore again as he came out about an hour later following the ruling in his favour.

Madoff would continue to wear the electronic monitoring bracelets and guarded by security being paid by his wife.

Jude Lawrence M McKenna of the United District Court, who heard the prosecutors appeal, upheld the Monday's decision of the Magistrate Judge Ronald L Ellis that the prosecutors have failed to prove that he is a flight risk or could obstruct justice or is danger to the community.

Ellis had placed some more restriction which would allow all outgoing mail to be monitored by a security firm so that he cannot transfer any assets and inventory of portable valuables in his apartment to be taken and checked every two weeks by the security firm.