Madoff CFO Loses Bail Bid, Despite Prosecutors’ Pleas

Oct 29 2009 | 2:55am ET

Frank DiPascali, the CFO of Bernard Madoff’s $65 billion Ponzi scheme, has been cooperating with the authorities in a bid for leniency. But so far, the judge overseeing his case hasn’t offered him any.

Despite the pleas of prosecutors, who told U.S. District Judge Richard Sullivan that DiPascali’s continued incarceration is hindering their investigation, the judge again denied DiPascali’s bail request. Sullivan ruled at the time of DiPascali’s guilty plea in August that the potential for 125 years in prison made Madoff’s right-hand man a flight risk.

Apparently, more stringent bail terms, including a $10 million bond signed by nine people, a $2 million personal property pledge, home confinement and electronic monitoring, are still not enough to convince Sullivan that DiPascali will stay put until his sentencing on conspiracy, fraud and money laundering charges in the spring.

The judge did not outright reject the bail bid, inviting prosecutors to show the “quality” of his potential cooperation in a sealed filing. If that convinces him, Sullivan said he would reconsider the bail bid.

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