NYC judge allows Bernard Madoff to remain free
By LARRY NEUMEISTER, Associated Press
Jan 12, 2009 11:13 AM CST
Disgraced financier Bernard Madoff leaves U.S. District court after a bail hearing in New York, Monday, Jan. 5, 2009. Prosecutors on Monday said Madoff violated bail conditions by mailing about $1 million worth of jewelry and other assets to relatives and should be jailed without bail. (AP Photo/Kathy...   (Associated Press)

A judge has allowed Bernard Madoff to remain free on bail, rejecting a bid by prosecutors to send the disgraced investor to jail.

Madoff mailed more than $1 million in jewelry and heirlooms to family and friends over the holidays. Prosecutors said the gifts were grounds to have his bail revoked because what's left of Madoff's assets will have to be returned to burned investors.

Madoff's lawyers said the gifts were an innocent mistake and said he is neither a danger to the community nor a threat to flee.

The fact that Madoff (MAY'-dawf) has been able to spend his days in his luxury apartment _ and not jail _ has stirred up outrage among investors who lost billions in his alleged fraud.