A New York City judge is set to rule on Monday on whether the disgraced financier should have his bail revoked and be sent behind bars.

Madoff is accused of burning investors in a US$50 billion (S$74.4 billion) fraud.

While free on bail, Madoff sent more than US$1 million worth of jewelry and heirlooms as gifts to family and friends over the holidays.

Prosecutors said that the gifts were grounds to have his bail revoked because what's left of Madoff's assets will eventually be returned to burned investors. Madoff's lawyers called the sending of the gifts an innocent mistake.

Madoff has been confined to his penthouse around the clock, the only exception being court appearances. -- AP