Prosecutors:Madoff was ready to send out cheques worth $173 million

Prosecutors say that Bernard Madoff had $173 million in signed cheques in his office desk that he was ready to send out at the time of his arrest last month.

The detail was provided in a court filing Thursday as prosecutors argued that Madoff should have his bail revoked and be sent directly to jail.

They said the 100 cheques were further evidence that he wants to keep his assets away from burned investors.

Investigators previously have said that Madoff had planned on distributing more than $200 million to his closest friends and family after he realized his scheme had unravelled.

In support of their effort to have Bernard Madoff's $10 million(US) bail revoked, in a court filing, prosecutors listed SIXTEEN watches, including diamond-encrusted timepieces from Tiffany and Cartier. Four diamond brooches. Two sets of cuff links. An emerald ring.

Madoff, who is said to have confessed last month to a huge Ponzi scheme, is under 24-hour house arrest in his $US7 million Manhattan apartment.

The filing was released on Wednesday morning, less than 48 hours after a hastily called court hearing in which prosecutors said that Madoff and his wife, Ruth, had sent packages of valuables to his sons and brother, violating the terms of his bail agreement.

Madoff has promised the Securities and Exchange Commission not to dispose of any of his assets, which may be sold and used to repay investors.

His sons, Andrew and Mark, blew the whistle on their father by informing their lawyers of the unexpected parcel.

At the hearing on Monday, a lawyer for Madoff, Ira Lee Sorkin, told the court that many of the items were relatively inexpensive, including $25(US) cuff links and $200(US) mittens.
He argued the valuables were sent innocently and that the mailings happened before an asset freeze came into effect.

But assistant US attorneys Marc Litt and Lisa Baroni said in their filing that Mr Sorkin's description of the packages was at best, incomplete.

The filing said the defendant had sent a package containing "13 watches, one diamond necklace, an emerald ring and two sets of cuff links". "The Government has been informed that the value of those items could exceed $US1 million. Two other packages - containing a diamond bracelet, a gold watch, a diamond Cartier watch, a diamond Tiffany watch, four diamond brooches, a jade necklace and other assorted jewellery - also were sent to relatives."

There was no mention of the mittens.

Victims of Madoff's fund scheme include director Steven Spielberg.

He was also accused of sending more than $1 million worth of jewelry to friends and family over the holidays.

Defence lawyers have said that he is not a risk to flee or any danger to the community, and therefore he should remain free on bail.