Prosecutors Ask Judge To Let Key Madoff Defendant Go Home

[WSJ_law_blog]

Prosecutors have petitioned Manhattan federal judge Richard Sullivan to reconsider his decision to deny bail to Bernard Madoff’s chief financial officer while he awaits sentencing.

Prosecutors are asking that Frank DiPascali, Jr., be released from jail and be given home detention under some strict conditions. The Marc Dreier bail package, in other words.

DiPascali pleaded guilty Aug. 11 to criminal charges related to helping carry out Madoff’s Ponzi scheme and potentially faces a long, long time in prison.

But DiPascali could be valuable to the government, as he is expected to be a possible key witness in future Madoff-related prosecutions. It was a surprise to both prosecutors and DiPascali’s defense counsel that Sullivan denied bail. The judge ruled that the proposed bail package was not sufficient to guard against the risk of flight.

For more on Sullivan’s reputation for being a little frosty towards criminal suspects, even those who cooperate with the government, check out this prior LB post.

At the original bail hearing, both sides asserted that DiPascali wasn’t prepared for jail, had no intention of fleeing and would be better prepared to assist prosecutors if he were free on bail.

Today, Preet Bharara, the U.S. Attorney in Manhattan filed a motion for reconsideration of the bail denial, proposing what the prosecution described as a “significantly strengthened bail package.” It asked that DiPascali be released from jail pending the following: a personal recognizance bond of $10 million to be co-signed by nine people, including family members; pledged security worth about $2 million, including three family-owned properties and $500,000 worth of retirement savings belonging to his sister; electronic home monitoring with permission to leave only under the escort of an FBI agent under limited circumstances; and the surrender of his wife’s travel documents.