Madoff aide freed on bail as he awaits sentencing

NEW YORK (Reuters) - A former key deputy to Bernard Madoff was freed on bail on Tuesday, as he awaits sentencing for his role in the massive investment swindle.

Frank DiPascali, 53, met the conditions of his $10 million bail and was released from jail, according to his attorney, Marc Mukasey.

DiPascali will be placed under house arrest and he faces strict electronic monitoring, according to the bail terms.

DiPascali pleaded guilty last August to 10 criminal charges and forfeited $6.1 million in ill-gotten assets after rising through the ranks for 30 years to become a self-described chief financial officer under Madoff.

Madoff, 72, is serving a 150-year prison sentence for a years-long scheme to bilk investors in his Bernard L. Madoff Investment Securities money management operation. He pleaded guilty in March 2009 to orchestrating the fraud, which prosecutors estimate involved as much as $65 billion.

Prosecutors say DiPascali created phony documents to conceal Madoff's scheme. As part of his guilty plea, he agreed to cooperate with U.S. authorities investigating the Madoff case.

Last month, Manhattan federal judge Richard Sullivan asked prosecutors to inform him by November 17 "whether defendant's cooperation has concluded and whether the parties are prepared to proceed to sentencing."

Judge Sullivan agreed to grant DiPascali bail in February, but it took months for the former Madoff aide to meet the conditions.

The case is USA v DiPascali, U.S. District Court for the Southern District of New York, No. 09-764.

(Reporting by Martha Graybow, editing by Gerald E. McCormick)