Madoff Stays Free on Bail

A New York judge ruled today that Bernard Madoff may 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 that he is neither a danger to the community nor a threat to flee. The fact that Madoff 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. (More Bernard Madoff stories.)