Madoff Agrees to Partial Judgment in Civil Case

Accused Wall Street swindler Bernard Madoff has agreed to a proposed partial judgment in a civil case brought by the U.S. Securities and Exchange Commission without admitting or denying fraud charges, the regulator said on Monday.

The SEC said the agreement with Madoff extends an asset freeze on the former Nasdaq stock exchange chairman, with the amount of penalties and disgorgement to be decided later.

AP Graphics Bernard Madoff

Madoff, 70, is facing criminal and civil charges in U.S. District Court in Manhattan after authorities said he admitted to running a Ponzi scheme over many years with losses of $50 billion.

He is under house arrest and 24-hour surveillance in his luxury Manhattan penthouse apartment after being arrested on December 11, 2008, for what authorities have called the biggest Ponzi scheme in history. A Ponzi scheme typically is one in which returns to early investors are paid with the principal received from newer clients.

Lawyers for Madoff could not immediately be reached for comment on Monday's court filing by the SEC, an agency severely criticized by members of Congress and commentators for failing to catch Madoff despite receiving tips.

The agency's top enforcement official, Linda Thomsen, has resigned and will return to the private sector.

One white-collar defense attorney not involved in the Madoff case said Monday's filing indicates Madoff will settle the civil case.

"It means that he is not fighting. He is going to be doing what he can to resolve everything,'' the attorney, Bradley Simon said. "He is unlikely to settle with the SEC if he intends to fight the criminal case, because that doesn't serve his interests.''

Madoff has not appeared in court to formally answer the charges.

His lawyers have said Madoff is cooperating with investigators.

"The proposed partial judgment would leave the issues of the amount of disgorgement, prejudgment interest and civil penalty to be imposed against Madoff to be decided at a later time,'' the SEC said according to a statement posted on the SEC's website.

"For purposes of determining Madoff's obligation to pay disgorgement, prejudgment interest and/or a civil penalty, the proposed partial judgment deems the facts of the complaint are established and cannot be contested by Madoff,'' said the SEC.

In court documents filed last week, an updated list of customers of Bernard L. Madoff Investment Securities was peppered with more than 10,000 names of celebrities, financial firms and banks and some smaller investors.

The nonprofit Securities Investor Protection has set a July 2 deadline for customers to make their claims to a court-appointed trustee.

Court-appointed trustee, lawyer Irving Picard, said in court last Wednesday that $946 million has been recovered so far from Madoff's firm to be disbursed to defrauded customers.

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