<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published July 16, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Madoff starts serving 150-year jail term
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(NEW YORK) Bernard L Madoff lived most of his life in spacious mansions and sun-drenched beachfront villas or aboard luxurious yachts.
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</TD></TR><TR class=caption><TD>Dangerous company: The Butler medium-security facility, where ex-financier Bernard Madoff will initially live, is populated with violent criminals and drug dealers, most of them serving life sentences of their own </TD></TR></TBODY></TABLE>On Tuesday, Madoff arrived at the Butner Federal Correctional Complex in a blue prison jumpsuit, his hands and feet shackled, to begin serving a 150-year prison sentence for orchestrating one of the largest frauds in history.
Inside its prison fencing, the complex, about 45 minutes northwest of Raleigh, North Carolina, may look like a sedate college campus. But its medium-security facility, where Madoff, 71, the former Wall Street financier, will initially live, is populated with violent criminals and drug dealers, most of them serving life sentences of their own.
'The problem is really not going to be Bernie Madoff; he will likely be a model inmate,' said Edward S Bales, who runs Federal Prison Consultants, which provides services to prospective inmates. 'It's going to be how the other inmates react to him. There will be people who were out of work and who have lost their homes and blame him for the economy, they may also be jealous and believe he has billions of dollars hidden somewhere.'
After prison guards strip him of his clothing and conduct a full-body search, Madoff, now inmate No 61727-054, will probably undergo an extensive mental health evaluation to determine whether he is a potential suicide risk.
Prison consultants said the Butner facility is known for housing criminals in need of mental health treatment. While officials evaluate his mental status, the onetime investment manager could be placed in solitary confinement, monitored day and night, and allowed to leave his cell for only about an hour each day.
If prison psychologists determine Madoff's mental health is stable, he will be transferred into the general population, where he will live with other inmates in dormitory-style housing, be allowed to receive visitors several times a week and watch television or visit the gym.
Madoff's lawyer had requested that he be kept in a federal prison in Otisville, New York, and Judge Denny Chin, who presided over the case, recommended that he stay in the Northeast.
Federal prison guidelines mandate that inmates be held within 800km of their previous home, raising the possibility that Madoff could be transferred to a prison in the Northeast later.
Other inmates in Butner include John Rigas, founder of Adelphia Communications, and his son, Timothy, who were convicted of fraud in 2004. Both men are in the prison's low-security facility, which houses inmates convicted of lesser crimes.
Meanwhile the trustee liquidating Bernard Madoff's business has sued HSBC Holdings and a Cayman Islands-based hedge fund over claims that the two withdrew US$578 million in 'fake' profit from the con man's firm before it collapsed.
The lawsuit, filed on Tuesday by trustee Irving Picard in US Bankruptcy Court in Manhattan, claims HSBC withdrew most of the money on behalf of its client, Herald Fund Spc, less than 90 days before Madoff's firm began liquidating. Mr Picard says such transfers are recoverable under US bankruptcy law. -- NYT, Bloomberg
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Madoff starts serving 150-year jail term
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(NEW YORK) Bernard L Madoff lived most of his life in spacious mansions and sun-drenched beachfront villas or aboard luxurious yachts.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
Inside its prison fencing, the complex, about 45 minutes northwest of Raleigh, North Carolina, may look like a sedate college campus. But its medium-security facility, where Madoff, 71, the former Wall Street financier, will initially live, is populated with violent criminals and drug dealers, most of them serving life sentences of their own.
'The problem is really not going to be Bernie Madoff; he will likely be a model inmate,' said Edward S Bales, who runs Federal Prison Consultants, which provides services to prospective inmates. 'It's going to be how the other inmates react to him. There will be people who were out of work and who have lost their homes and blame him for the economy, they may also be jealous and believe he has billions of dollars hidden somewhere.'
After prison guards strip him of his clothing and conduct a full-body search, Madoff, now inmate No 61727-054, will probably undergo an extensive mental health evaluation to determine whether he is a potential suicide risk.
Prison consultants said the Butner facility is known for housing criminals in need of mental health treatment. While officials evaluate his mental status, the onetime investment manager could be placed in solitary confinement, monitored day and night, and allowed to leave his cell for only about an hour each day.
If prison psychologists determine Madoff's mental health is stable, he will be transferred into the general population, where he will live with other inmates in dormitory-style housing, be allowed to receive visitors several times a week and watch television or visit the gym.
Madoff's lawyer had requested that he be kept in a federal prison in Otisville, New York, and Judge Denny Chin, who presided over the case, recommended that he stay in the Northeast.
Federal prison guidelines mandate that inmates be held within 800km of their previous home, raising the possibility that Madoff could be transferred to a prison in the Northeast later.
Other inmates in Butner include John Rigas, founder of Adelphia Communications, and his son, Timothy, who were convicted of fraud in 2004. Both men are in the prison's low-security facility, which houses inmates convicted of lesser crimes.
Meanwhile the trustee liquidating Bernard Madoff's business has sued HSBC Holdings and a Cayman Islands-based hedge fund over claims that the two withdrew US$578 million in 'fake' profit from the con man's firm before it collapsed.
The lawsuit, filed on Tuesday by trustee Irving Picard in US Bankruptcy Court in Manhattan, claims HSBC withdrew most of the money on behalf of its client, Herald Fund Spc, less than 90 days before Madoff's firm began liquidating. Mr Picard says such transfers are recoverable under US bankruptcy law. -- NYT, Bloomberg
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