NEW YORK - A COURT hearing has been scheduled for Wednesday on a US government appeal of a judge's ruling keeping accused swindler Bernard Madoff out on bail and under house arrest, court officials said on Tuesday.

Monday's ruling gave Madoff, one of the most vilified figures in America, more time in his US$7 million (S$10.4 million) Manhattan penthouse apartment before he goes to trial or pleads guilty to a purported US$50 billion worldwide investment fraud.

The government wants a judge revoke his bail and send him to jail.

Judge Lawrence McKenna in US District Court in Manhattan will hear the government's argument at 2.30pm (1930 GMT, 3.30am Thursday, Singapore time) on Wednesday, a clerk in his court and a court spokesman said.

It was not immediately clear whether Madoff would appear at the hearing, but in most cases defendants do attend hearings.

His lawyers were not immediately available to comment.

The 70-year-old investment adviser is under house arrest and may leave his apartment only for court appointments.

Madoff's lawyers have said their client is cooperating with government investigations following his Dec 11 arrest for what would be the biggest Ponzi scheme in history. In a Ponzi scheme, early investors are paid with the money of new clients.

The government has until Feb. 11 to convince a grand jury to bring an indictment against Madoff, a former chairman of the Nasdaq stock market and a once-respected figure for more than 40 years in the financial industry.

On Monday, US Magistrate Judge Ronald Ellis rejected prosecutors' request to jail Madoff. Prosecutors later said they would appeal the ruling.

The government had asked the judge to jail Madoff, arguing that he violated a Dec 18 court order freezing his assets by mailing more than US$1 million of jewelry and valuables to family and friends. They also said he was a flight risk.

Authorities say Madoff has confessed to a US$50 billion fraud. -- THOMSON REUTERS