Madoff mails diamonds and jewelry to family members

Bernard Madoff, the US fund manager who’s been accused of the largest Ponzi scheme in history, has been accused of violating a court order by mailing out packages containing diamonds and jewelry. Madoff is currently under house arrest in his Manhattan, New York City apartment.

Prosecutors reported the mailed packages of diamonds in court papers released on Wednesday. They’re calling for Madoff to be jailed immediately.

Last month, Madoff was arrested and charged with an investment scam that defrauded clients of an estimated $50 billion.

Madoff apparently mailed five packages that contained diamonds and other valuable jewelry: two went to his brother, and the others went to his children. According to the Financial Times, the list of valuables contained “diamond Cartier and Tiffany watches, a diamond bracelet, four diamond brooches, a jade necklace, a gold watch and other assorted jewellery… One package contained about 13 watches, one diamond necklace, an emerald ring and two sets of cufflinks and could exceed $1 million.”

In a comment about the packages with diamonds, Ira Sorkin, Madoff’s lawyer, said that the transfers were innocent mistakes by Madoff and his wife, and that most of the items had been returned. Sorkin emphasized that Madoff was not a flight risk, that he was under 24-hour security, and that Madoff and his wife had surrendered their passports.

Prosecutors have claimed that the packages containing diamonds were in violation of the court order which prevented Madoff from concealing/disposing of his assets.