Madoff Tried to Shift Assets Before Arrest, US Says

A search of accused swindler Bernard Madoff's office desk revealed he had signed checks totaling more than $173 million ready to be sent, U.S. prosecutors said in court papers Thursday asking a judge to jail him.

The government's written brief said the checks were discovered by investigators after his arrest and charge on Dec. 11 and showed the 70-year-old investment adviser tried to move money before his alleged ponzi scheme became known to authorities.

AP Graphics Bernard Madoff

Prosecutors have been pressing their case since Monday to jail Madoff pretrial after earlier agreeing to $10 million bail and other restrictions.

A clerk for Magistrate Judge Ronald Ellis of U.S. District Court in Manhattan said the judge will issue a decision Friday or Monday on the government's request to revoke Madoff's bail and jail him.

In a hearing Monday and in court papers Wednesday, prosecutors said Madoff and his wife mailed more than $1 million worth of jewelry and watches to friends and family in late December in violation of a Dec. 18 court order freezing his assets.

It said his lawyers' brief to the court Wednesday failed to mention part of the Dec. 11 criminal complaint in which Madoff was quoted as saying he wanted to transfer $200 million to $300 million of the remaining investors' assets to selected family and friends.

"In fact, when the defendant's office desk was searched, investigators found approximately 100 signed checks totaling more than approximately $173 million, ready to be sent out,'' the government's brief to the judge on Thursday said.

It said Madoff's mailing of jewelry and watches in late December "demonstrates a continuing intention to benefit those close to him to the detriment of victims.''

Madoff is under house arrest and 24-hour surveillance at his luxury Manhattan apartment after authorities said he confessed to a $50 billion ponzi scheme over many years and charged him with securities fraud last month.

Shifted $160 Million to UK: Reuters

Additionally, company accounts and filings obtained by Reuters showed that Madoff moved nearly $160 million of his own assets to his UK-based firm in 2007.

Madoff moved the assets via the allotment of two sets of new shares in Madoff Securities International Limited, a UK firm he controlled.

On Thursday Britain's Serious Fraud Office (SFO) said it had begun investigating Madoff's UK operations, focusing on UK victims and any offences that may have been committed in the country.

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