Madoff can expect de facto life term

Madoff's brother, Peter, and his sons, Mark and Andrew, held executive positions in the brokerage unit of the firm. Their lawyers say they were not aware of or involved in the crooked asset management side.

The judge has allowed Madoff to wear his own clothes at the hearing, instead of the loose-fitting navy blue shirt and pants issued by the jail where he has been held since March 12.

Legal observers expect U.S. District Judge Denny Chin to sentence Madoff to one of the stiffest punishments for a white collar criminal.

"Madoff organized and led this fraud," the prosecutors said in court papers on Friday arguing for a life sentence. "Numerous clerical employees and others assisted."

Madoff has said all along he did it on his own and has not named accomplices. Only his outside accountant has been charged.

Michael Shapiro, a lawyer at law firm Carter Ledyard and Milburn LLP, said he expected a sentence of 30 years, based on previous sentences for large frauds in the same court.

He cited the case of former WorldCom Chief Executive Bernard Ebbers, who is serving 25 years for accounting fraud in a low-security prison.

"The individual damage that Madoff caused is probably much greater," Shapiro said. "Thirty years is effectively a life sentence and also takes into account he didn't kill anybody."

Madoff will serve his time in a low or medium security prison depending on the length of his incarceration.

Madoff and his wife have been stripped of all of their luxury homes and possessions, although Ruth Madoff is being allowed to keep $2.5 million in cash, according to an agreement with prosecutors.