Bernie Madoff, Notorious Ponzi Schemer, Dies In Prison: Report

NEW YORK CITY — Bernie Madoff, the notorious financier who swindled billions in the largest Ponzi scheme in history, died in prison, according to a report.

Madoff, 82, passed away from apparent natural causes early Wednesday at Federal Medical Center in Butner, North Carolina, a source told the Associated Press.

The former financier's death didn't exactly inspire displays of mourning.

Mayor Bill de Blasio learned about Madoff's death while he gave his daily briefing on Wednesday. Speaking off the cuff, he recalled Madoff's $64.8 billion scheme as a "very sad episode" in the city's history.

"A lot of people unfortunately were hurt, so, the day someone passes is not a time to dance on a grave, but let’s just be honest — many, many people were hurt by his actions, it’s time to hopefully turn the page and move forward," de Blasio said.

Madoff engaged in the largest financial fraud in history, according to prosecutors. For decades, he enticed thousands of investors, many of whom were New York City retirees, with promises of sky-high returns on their investments.

But in truth Madoff was actually taking new investments and passing them off as returns for other investors — the classic mechanics of a Ponzi scheme.

The epic scheme swelled as retirees entrusted Madoff with their life savings and celebrities such as Kevin Bacon and Kyra Sedgwick, Steven Spielberg and Hall of Famer Sandy Koufax looked to boost their considerable fortunes. Madoff also pulled in pension funds, schools like Yeshiva University and New York University, non-profits such as the Elie Wiesel Foundation for Humanity and the International Olympic Committee, according to the New York Post.

Like all Ponzi schemes, it was destined for collapse.

The inevitable fall came in 2008 as the global financial system's tailspin. Madoff couldn't sustain the scheme without cash and he told his sons that his business — supposedly with $60 billion at the time — was broke.

His sons told law enforcement and Madoff was arrested at his Manhattan home the next day, the New York Times reported.

The revelation of the scheme grabbed headlines and Madoff became an instant villain, a symbol of wanton greed so hated he had to wear a bulletproof vest to court. His investors lost billions and at least four committed suicide from the ruin, the New York Post reported.

Madoff's own son Mark committed suicide on Dec. 11, 2010, the second anniversary of Madoff's arrest.

Under pressure by federal authorities, Madoff admitted to the massive con in March 2009, pleading guilty to securities fraud and other charges and saying he was “deeply sorry and ashamed.”

He had lived several months under house arrest at his $7 million Manhattan penthouse apartment before he was led off to jail in handcuffs to applause in the courtroom.

“He stole from the rich. He stole from the poor. He stole from the in between. He had no values,” former investor Tom Fitzmaurice told the judge at the sentencing. “He cheated his victims out of their money so he and his wife ... could live a life of luxury beyond belief.”

Madoff recounted his crimes during a sentencing hearing, at one point turning to the gallery and saying: "I am sorry. I know that doesn’t help you," according to the New York Post.

He received a 150-year sentence from U.S. District Judge Denny Chin.

“Here, the message must be sent that Mr. Madoff’s crimes were extraordinarily evil and that this kind of irresponsible manipulation of the system is not merely a bloodless financial crime that takes place just on paper, but it is instead ... one that takes a staggering human toll,” Chin said.

A court-appointed trustee eventually recovered more than $13 billion of an estimated $17.5 billion that investors put into Madoff’s business.

Madoff's attorneys last year filed papers to try to get him released from prison amid the coronavirus pandemic. They argued that he suffered from end-stage renal disease and other chronic medical conditions, but their request was denied and Madoff died in prison.