By Chad Bray
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Disgraced financier Bernard L. Madoff will no longer be able to freely leave his home during the day thanks to another change in his bail conditions Friday.
At the request of prosecutors and Madoff's lawyers, U.S. Magistrate Judge Theodore H. Katz ordered that Madoff, the founder of Bernard L. Madoff Investment Securities LLC, be placed on 24-hour home detention with electronic monitoring.
Originally, Madoff had been required to be at home only between 7 p.m. EST and 9 a.m. EST, the least restrictive form of home detention.
Madoff also was ordered, at his wife's expense, to provide round-the-clock monitoring of his building, including video monitoring at his apartment doors and communication devices or services to send a direct signal to the Federal Bureau of Investigation "in the event of the appearance of harm or flight."
"The security firm will provide additional guards available on request if necessary to prevent harm or flight," Assistant U.S. Attorney Marc Litt said in a letter requesting the change.
The security procedures must be put in place by Saturday.
Last week, Madoff, a former chairman of the Nasdaq Stock Market who has been a force in Wall Street trading for nearly 50 years, was charged criminally with securities fraud in a massive Ponzi scheme. The Securities and Exchange Commission also has brought civil charges in the matter.
He was released on a $10 million personal recognizance bond following his arrest.
Madoff, 70, allegedly told senior employees last week that the firm's investment-advisory business was "basically a giant Ponzi scheme," and he estimated the losses from the fraud were at least $50 billion, according to court documents.
In a Ponzi scheme, funds from new investors are typically used to pay distributions and redemptions to existing investors.
Since Madoff's arrest last week, dozens of investors, charities and companies have emerged as victims.
-By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com
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Publié le 19 Décembre 2008 Copyright © 2008 Dowjones