Prosecutors told about mailed jewellery by Madoff children

Bernard Madoff 'fraud': Prosecutors told about mailed jewellery by Madoff children
The sons of alleged $50bn (£33.4bn) fraudster Bernard Madoff are believed to have informed US prosecutors that their father sent them and other family members approximately $1m of jewellery in the post.

By James Quinn, Wall Street Correspondent
Last Updated: 7:13PM GMT 06 Jan 2009
The US Attorney's office is now seeking to have Mr Madoff jailed as a result of the alleged breach of a freeze on his assets, with Judge Ronald Ellis expected to rule on the plea by the end of this week.
Mr Madoff's laywer, Ira Sorkin, admitted yesterday that he believed the Madoff "children brought it to the attention of the government".
Mr Madoff posted five packages – which Assistant US Attorney Marc Litt claimed contained "very valuable jewellery" - including watches, pens and cuff links to members of his close family including brother Peter.
But Mr Sorkin said that Mr Madoff innocently sent the packages.
Both sides were yesterday due to file written arguments to Judge Ellis outlining why they believe Mr Madoff should or should not be jailed, with a decision likely by Friday. Prosecutors maintain Mr Madoff, who remains under 24-hour house arrest in the mean time, is a considerable flight risk.
The Securities and Exchange Commission is widening its probe into the Madoff affair, which could yet prove to be the largest Ponzi scheme in history.
The regulator's inspector general David Kotz is believed to be looking into whether the regulatory failure was an isolated incident, in addition to why it failed to uncover the alleged fraud despite tip-offs and partial investigations.