Jail or penthouse? N.Y. judge to rule on Madoff bail

[January 12, 2009]  NEW YORK (AP) -- Bernard Madoff could be forced to trade his luxurious penthouse for a jail cell.

A New York City judge is set to rule Monday on whether the disgraced financier should have his bail revoked and be sent behind bars.

Madoff (MAY'-dawf) is accused of burning investors in a $50 billion fraud.

While free on bail, Madoff sent more than $1 million worth of jewelry and heirlooms as gifts to family and friends over the holidays.

Prosecutors said that the gifts were grounds to have his bail revoked because what's left of Madoff's assets will eventually be returned to burned investors. Madoff's lawyers called the sending of the gifts an innocent mistake.

Madoff has been confined to his penthouse around the clock -- the only exception being court appearances -- and under constant guard as part of his release.

[Associated Press]

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