Bernard Madoff, 70, accused of a $50 billion fraud is expected to attend a Manhattan Federal Court on Wednesday for a hearing of U.S. prosecutors who seek his imprisonment.

Prosecutors have been seeing jail for Madoff since last week after it was revealed he mailed luxurious items to family friends which they said violated a court order for him to freeze hisassets.

However, a federal judge ruled on Monday that Madoff could remain free on bail.

Prosecutors will challenge the magistrate's decision in the hearing tomorrow, a defense lawyer said, according to Bloomberg.

Madoff is now under constant watch and confined to his Manhattan penthouse, the only exception is when he needs to attend court hearings.