Former prosecutors say this is a signal that a deal has been reached in the highly complex scam that robbed thousands of people of billions of dollars.
Madoff's investors are not happy to hear the he may cut a deal.
92-year old Zsa Zsa Gabor is one of them. Her husband Prince Frederick Von Anhalt said the couple lost their $10 million life savings to Madoff.
"It's not enough" for Madoff to just plead guilty and go to jail, Von Anhalt told ABC News. "That's what he wants, he wants to go to jail, his life is over. He wants to protect his family, his wife, his children."
Von Anhalt also wants to see Madoff's wife, Ruth, and his sons arrested and put in jail. "What nerve she has, to say that she wants to keep all that money. That's our money! Screw her!"
There could be a little good news next week for some of the victims who lost money with Madoff. Ten investors will receive the first of the $500,000 payments from the Securities Investor Protection Corporation, which protects investors in the event of a brokerage firm failure.
"These were the first ten people who submitted what I would call easy claims, in other words, these are people who deposited money into the Madoff scam but never withdrew anything," said Stephen Harbeck, President of SIPC.
Over 2,350 claims from angry investors have been filed and that number could soon double. So far the claims add up to around $1 billion. The deadline to submit a claim is July 2, 2009.
Avni Patel contributed to this report. Click Here for the Investigative Homepage.