Madoff sent to jail to await June sentencing

Many in the courtroom at U.S. District Court in lower Manhattan applauded after Chin's decision to put Madoff away immediately rather than continue his house arrest.

NEW YORK (MCT, Newsday) - At the end of a tense, 75-minute court session, Bernard Madoff was no longer the accused, but the convicted, and at mid-day Thursday he found himself in a jail cell, far from his plush Upper East Side apartment.

In what was a surprise to many, Judge Denny Chin revoked bail for the 70-year-old, disgraced money manager and ordered him jailed until his sentencing June 16.

Many in the courtroom at U.S. District Court in lower Manhattan applauded after Chin's decision to put Madoff away immediately rather than continue his house arrest.

For the first time publicly, Madoff spoke about pulling off one of the biggest swindle's in American history, admitting his guilt to 11 counts, consisting of fraud, money laundering, perjury and theft. He could be sentenced to a maximum of 150 years in prison.

Madoff stood behind the defense table and spoke, at first in a barely audible voice. "I operated a Ponzi scheme through the investment side of my business," Madoff said before a packed, hushed courtroom. "I am deeply sorry and ashamed."

Madoff said that he thought the scheme would end at some point, but added that over the years it proved "difficult and then impossible" to call the whole thing off.

Prosecutors say Madoff's Ponzi scheme operated for about 20 of the 40 years he was in business. During the 20 years, prosecutors said, Madoff bilked investors out of as much $65 billion.

As Madoff spoke, Chin said, "Try to keep your voice up so I can hear you." Madoff then coughed slightly.

"Are you feeling all right under the circumstances?" Chin said.

"Yes I am," Madoff responded.

Madoff was reminded by Chin that he was under oath. Chin also asked Madoff if he understood he had waived his right to a trial. When Madoff said he did, Chin asked him, "How do you now plead, guilty or not guilty?"

"Guilty," Madoff said.

Chin then revoked Madoff's bail. Ira Sorkin, Madoff's attorney, said he will appeal the bail revocation.

Madoff was then whisked off to jail.

It was all fairly brief and even anti-climactic. Only three of Madoff's victims spoke in open court, mostly to say they objected to Madoff's plea. They said a trial would have brought out more information about the Ponzi scheme and who was involved, such as members of Madoff's immediate family.

"I believe you have the opportunity today to find out information as to where the money is and who else is involved in the crime," Ronnie Sue Ambrosino told the court.

Another victim, whose name was not audible, said "I don't understand why conspiracy was not part of his plea."

It took "an army of people to produce these documents," he said, referring to the financial statements Madoff sent clients, which turned out to be fraudulent.

Members of the news media, victims and curiosity-seekers gathered before 9 a.m. outside the gray, gothic federal courthouse on Foley Square, hoping to catch a glimpse of the lanky, white-haired Madoff, who only a few months ago had been spoken of in worshipful terms by his clients. Madoff was arrested at his apartment Dec. 11.

He had arrived at the courthouse two hours earlier, pulling up in a white van, avoiding the crowds.

Richard Friedman and his wife, Cynthia, both 59 and from Jericho, N.Y., were among the victims outside the courthouse. They said between themselves, his mother, and his late father's estate, the family had lost $14 million to Madoff.

"I want him to see the faces of the people he has destroyed," Cynthia Friedman said.

Another victim, Helen Chaitman, 67, of Frenchtown, N.J., said she lost her life savings to Madoff. Chaitman, an attorney, said she came because "I think for anyone who invested their entire savings, it's important to see the man who did this."

A Manhattan couple, Gerald and Debora Strober, walked through the media throngs with a book they had written about Madoff which came out Monday. They said they had interviewed investors for the book, which is called "Catastrophe."

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(Newsday staff writers John Riley Sophia Chang, Thomas Maier, Kathleen Kerr, Michael Frazier, Keith Herbert, Ellen Yan, Ann Givens, as well as Jonathan Starkey and Maria Alvarez, contributed to this report.)