In a similar lawsuit filed on Wednesday in U

"In fact, when the defendant's office desk was searched,investigators found approximately 100 signed checks totalingmore than approximately $173 million, ready to be sent out,"the government's brief on Thursday said, providing newinformation from the investigation. Madoff is under house arrest and 24-hour surveillance athis luxury Manhattan apartment after authorities said heconfessed to running a $50 billion Ponzi scheme over manyyears. He is charged with securities fraud but has not appearedin court to answer the criminal complaint. A Ponzi scheme is one in which early investors are paid offwith money from later investors. Madoff's mailing of jewelry and watches in late December"demonstrates a continuing intention to benefit those close tohim to the detriment of victims," the government said inThursday's court papers.

Horwitz and his legal partner, Ira Sorkin, had argued tothe court that the valuables were "sentimental personal items",and that Madoff did not realize that mailing them violated thecourt order. Lawyers for investors suing to recover losses welcomed thegovernment's attempt to put Madoff behind bars. "It should have been done from the first day," said HowardKleinhendler, attorney for an investor who placed $10 millionwith Madoff's firm days before his Dec 11 arrest. "Madoffshould not be able to communicate with anyone from hisapartment in an unrestricted way." In a similar lawsuit filed on Wednesday in U.S.

BankruptcyCourt in New York, another Kleinhendler client, HadleighHoldings LLC of Miami, sought to recover $1 million wired threedays before the scandal broke. District Court in Manhattan, thePacific West Health Medical Center Inc Employees RetirementTrust sued Fairfield Greenwich Group, a hedge fund exposed tothe tune of $7.5 billion with Madoff. The lawsuit is one ofseveral that investors have filed against Fairfield and otherfunds seeking to recover their losses. (Additional reporting by Edith Honan; Editing by ToniReinhold) Bonds.