28 Jun 2009

Prosecutors seek 150 year jail sentence for Madoff

5:05 pm on 28 June 2009

Federal prosecutors are requesting a 150 year sentence for Bernard Madoff as they seek to keep the disgraced Wall Street mogul in prison for the rest of his life.

A US district court judge entered a preliminary order calling on the former NASDAQ chairman to forfeit more than $US170 billion in illegally obtained assets.

In an accompanying order, the US District Court, Southern District of New York, stipulated that his wife Ruth Madoff be stripped of $US85 million in assets, leaving her with $US2.5 million in funds.

Madoff, 71, plead guilty to 11 criminal counts in March, including fraud, money laundering and perjury and is to be sentenced on Monday.

Many of the investors were elderly retirees who thought their life savings were in safe hands.

Madoff told the court in March that of the billions of dollars which passed through his hands during his three-decade scam he never invested one cent in the market.

Instead he stashed the funds in a Chase Manhattan bank account.

The funds were then used to pay out "dividends" to investors in what is known as a "Ponzi scheme".