Lawyers propose a $2.5m bail for Madoff pal

Bernard Madoff’s long-time right-hand man, Frank DiPascali, should be released on $2.5 million bond and his travel restricted following an expected guilty plea to criminal charges later on Tuesday, according to a proposal by U.S. prosecutors and his lawyer.

DiPascali, who worked for Bernard L. Madoff Investment Securities LLC for 33 years, including as chief financial officer, faces charges in Wall Street’s biggest investment fraud of as much as $65 billion. He will make his first court appearance and plead guilty to criminal charges, according to court documents.

Acting federal prosecutor Lev Dassin said in a letter to presiding Manhattan federal court Judge Richard Sullivan that the personal recognizance bond would be signed by three financially responsible people and secured by $400,000 of equity in the house of DiPascali’s sister by August 18.

The letter, which said the bail conditions were jointly proposed by prosecutors and DiPascali, proposed a tentative sentencing date for May 2010.

Court documents released last Friday said U.S. prosecutors expect DiPascali to plead guilty to “a criminal information,” which is an alternative charging document to a grand jury indictment.

No further details have been provided on the charges, and his lawyer declined to comment.

Madoff, 71, pleaded guilty to securities fraud, money laundering, perjury and other charges in March. He is serving an effective life term of 150 years in prison.

Source: Reuters