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CBS: Madoff to serve fraud sentence in Butner

Posted July 13, 2009
Updated July 14, 2009

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— Disgraced financier Bernard Madoff will serve his 150-year fraud sentence at the federal prison in Butner, CBS News reported Monday.

Madoff, 71, was sentenced two weeks ago to a maximum 150 years in prison for bilking thousands of investors out of billions of dollars.

Madoff to serve fraud sentence in Butner Madoff going to prison in Butner

CBS News said federal law enforcement sources confirmed he had been moved from a correctional center in New York and was headed to Butner to serve his sentence.

Federal prison officials said they don't comment on prisoner transfers because of security concerns. Nevertheless, the news of Madoff's transfer made its way quickly around the community Monday evening.

"He has got to serve his time somewhere, so I reckon why not Butner?” Butner resident Scottie Norwood said.

“I would think that he would be no threat to anybody, other than somebody wanting to get their money back. Maybe it is just security reasons for him,” Butner resident Stan Riley said.

A court-appointed trustee is trying to identify assets that could be sold to compensate victims of the $65 billion scheme. Investors have filed more than 15,400 claims against him.

Madoff won't be the first high-profile inmate to serve time in Butner. Israeli spy Jonathon Pollard, World Trade Center bombing mastermind Omar Abdel-Rahman, former televangelist Jim Bakker, Hustler publisher Larry Flynt and John Hinckley, who tried to assassinate former President Ronald Reagan, all spent time behind bars at the federal prison.

The Butner complex holds 3,400 inmates and includes two medium-security facilities, a low-security facility and a hospital, according to the Bureau of Prisons Web site.


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  • m123 Jul 13, 2009

    half of our neighborhood works at this prison. nobody i know thinks of it as a country club.

  • Travised Jul 13, 2009

    Is this location as Posh as "Camp Cupcake" Martha was at, only the men's location?? One of the Club Fed resorts we fund with our taxpayer dollars.

  • jet2rdu Jul 13, 2009

    Governor Perdue finally has some good news and some bad news too. The good first, another well connected Democratic donor is moving to NC. The bad news it is Bernard Madoff, and he probably will not contribute to your next election campaign.

    Here is the news you will not find in Tuesday's News and Obama, sorry, Observer. "Bernard Madoff, a Democrat, the convicted perpetrator of this country's largest financial fraud has decided to retire in NC."

  • Apex Man Jul 13, 2009

    If the goal of prison is to rehabilitate and punish a person then it makes more sense to send Federal Prisoners to the facility closest to where they live or committed their crimes. Otisville was less then an hours drive from NYC which would allow Mr. Madoff family visits. Jim Black should have been sent to Butner to be closer to his family. I know many will complain about this, but being closer to family makes the most sense and serves as a reminder every time a family member or friend visits.

  • doobedobedoodoo Jul 13, 2009

    now lets lock up all the Democrats for their crimes against society. They can cozy up to Jim Black.

  • mjeffrey Jul 13, 2009


  • bcarolinabreeze Jul 13, 2009

    Don't y'all see the connection?! He's close enough to the Randy Parton Arena to take over management with work release status. He generated $150 billion is sales activity on nothing but thin air. Imagine what he could do with a building like that and drunk never-were entertainers!

  • kevboom Jul 13, 2009

    Should have sent him to Georgia or Mississippi to work on a chain gang. Medium security is hardly punishment enough for the lives he destroyed.

  • imtiredofit Jul 13, 2009

    Maybe in a short while Mr Easley will be Bernie's room mate.

  • Jeff_W Jul 13, 2009

    Just what NC needs another fraudster. By the way how are the Easley's these days. Maybe they can share a vacation home with Bernie.