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After a number of legal analysts published attacks on the financial legal system - suggesting that the worst financial punishment which Bernard Madoff, the financier of the now infamous Ponzi scheme, would face was a fine of $1 million U.S - a mere drop compared to the $50 billion it is estimated Madoff may have stolen from investors.

A number of Democratic legislators, in response to the fraud have publicly called for a complete overhaul of the regulatory system, suggesting that it’s both inefficient and ineffective in it’s current position. The SEC’s inspector-general suggested that a number of “social and professional relationships” may be responsible for the delay in adequate investigation in the Madoff case.

Madoff, under court order, released a list of all his assets to the SEC at the beginning of this month. No word has been heard from the SEC on the matter since.

However, a number legal analysts - notably the prosecutor in the case, Marc Litt - rose the issue of a dissipation of financial assets. Madoff, who is under house arrest in his $7 million U.S. Manhattan apartment, may be attempting to hide money from behind the scenes, according to this analyst.

Litt called to the New York court to put Bernard Madoff in jail in the interim, to prevent further losses of assets, and protect the recovery of investors funds. Litt’s request suggests that Madoff may be distributing assets worth over $1 million each to his family and friends in the form of gifts.

Madoff’s lawyer, Ira Sorkin, responded to the claim, saying that the assets sent out had values of less than a few hundred dollars total.

The judge refused to jail Madoff on the limited evidence - however, reserved his judgment for Thursday, when the next hearing takes place, asking the lawyers to present more evidence from both sides.

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