Bernard Madoff ‘close to a plea bargain’

Prosecutors investigating the $50bn fraud allegedly engineered by Wall Street financier Bernie Madoff have filed a motion indicating that the 70-year-old may be ready to plead guilty.

The US Attorney's office said that Madoff is ready to waive an indictment, language that it frequently uses when a plea deal are in the offing.

Legal experts have long agreed that a plea bargain is inevitable, but are puzzled that it is taking longer to negotiate than it should. One noted defence attorney was quoted in Newsday as speculating that Madoff may be balking at saying anything to implicate his wife or sons in the fraud that has wiped out the life savings of many families - particularly in the Jewish community.

On Wednesday a special court hearing called to deal with a potential conflict of interest with Madoff's lawyer, Ira Sorkin, whose parents had money in Madoff's alleged Ponzi fraud, was adjourned without a new date named. Sorkin denies he personally invested with Madoff, but the abruptness of the cancellation of proceedings - called just a few hours earlier by federal prosecutors - is seen as further evidence a plea bargain is near.

The news comes as a growing number of people involved in the investigation are beginning to believe the size of Madoff's alleged fraud is significantly less than the $50bn that has become synonymous with the case. The actual number is not known at this point, but some believe it's less than $20 billion. ·