Prosecutors in New York on Wednesday released details of their request for the court to jail Madoff pending trial because of alleged attempts to dispose of property, in violation of his bail terms.
The request was first made Monday at a court hearing.
Madoff's lawyers were due to submit their response on Wednesday and the government side has until midday on Thursday to make a further submission.
The chambers of the presiding magistrate, Judge Ronald Ellis, told AFP that a decision on whether or not to jail Madoff was likely either on Friday or Monday.
Prosecutors say Madoff, who allegedly confessed to losing some US$50 billion (S$73.6 billion) in a giant pyramid fraud, is a 'danger to the community' because he has not respected the bail terms.
They alleged on Wednesday in a written motion that Madoff 'sent a package containing a total of approximately 13 watches, one diamond necklace, an emerald ring, and two sets of cufflinks. The government has been informed that the value of those items could exceed one million dollars.' Madoff also allegedly mailed a Cartier diamond watch, a Tiffany diamond watch, four diamond brooches and other jewellery to relatives.
The items are now in government custody, the prosecutor's office said.
Madoff, 70, was arrested on Dec 11 and released on a US$10 million (S$14.5 million) bail.
He was subsequently placed under 24-hour house arrest in his luxury Manhattan apartment and has also had his assets frozen.
Madoff's lawyer, Ira Sorkin, told the court the items had been sent innocently and did not violate the bail. -- AFP