Tag: Ronald L. Ellis

Bernard Madoff may be negotiating a guilty plea.

Federal prosecutors acknowledged in a court order released Monday that Madoff’s lawyer, Ira Sorkin, is “engaging in discussions concerning a possible disposition of this case,” the New York Times reports.

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On the one hand, a negotiated plea deal would deny defrauded investors (and everyone else) the satisfaction of watching the alleged swindler put on public trial. But it may be the only way that the 70-year-old Madoff might get a break and avoid dying in prison, particularly if he cooperates against others or helps recover billions in investor funds.

Sorkin declined to discuss his strategy but several former prosecutors told the Times that the language indicated that the discussions were about a deal in which Madoff would agree to plead guilty in exchange for some type of leniency.

“He’s trying to cut a deal,” said Marvin G. Pickholz, a former securities regulator. “The only other possible ‘disposition’ that could be negotiated would be for the government to drop the whole case – and that’s not going to happen.”

However, Newsday’s Anthony Destefano cited an unnamed source saying that any discussions were in the early stages and that no plea deal was imminent.

The information about the discussions was contained in an order, signed by the U.S. Magistrate Ronald L. Ellis, that approved a 30-day delay in a hearing on Madoff’s case. That order also denied prosecutors’ request that Madoff be jailed until he can be tried because they deem him a flight risk. Prosecutors said they plan to appeal.

The judge’s ruling allows Madoff to remain free in his Manhattan penthouse, wearing an electronic monitoring device and being watched by a security team paid for by his wife.

Ellis wrote that he was not satisfied that the government had proved “by clear and convincing evidence” that jailing Madoff was necessary to ensure he did not flee or obstruct justice. He added several requirements to the bail conditions, among them, requiring Madoff to compile an inventory of all “valuable portable items” in his Manhattan apartment.

A security firm that is already watching him around the clock will be required to check that inventory every two weeks.

Madoff was arrested Dec. 11 and charged with one count of securities fraud, but he has not yet been indicted.

Under federal court rules, Monday would have been the deadline for a hearing at which the prosecution would have had to show “probable cause” for Madoff’s arrest. But both sides agreed to postpone that deadline for at least a month – an indication that discussions about a possible plea deal are taking place.

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• Prosecutor: Madoff sent emeralds and diamonds to relatives, friends – January 7, 2009
• Prosecutors say they found signed Madoff checks in office desk – January 8, 2009
• Muck tracker – Prosecutors ask that Madoff’s bail be revoked – January 5, 2009
• Lymphoma foundation escapes Madoff wrecking ball – December 20, 2008
• Top Madoff players hire lawyers with ties to SEC, Justice department – December 18, 2008
• Madoff adjusts to life in a gilded jail – his neighbors not so much – December 19, 2008
• Bernard Madoff cultivated ties to the Washington establishment – December 16, 2008
• Madoff’s victims span the globe, from Palm Beach to Paris – December 15, 2008
• Cohmad Securities, Robert Jaffe face tough questions about Madoff ties – January 15, 2009
• After years of complaints about Madoff, Harry Markopolos is vindicated – January 5, 2009