Junk-bond king Michael Milken, who earned $550 million at the pinnacle of his Wall Street career, entered a minimum-security prison late Sunday where he will be assigned a new job paying a top wage of 40 cents an hour.
Milken surrendered to authorities at the prison at Camp Parks, an Army post about 40 miles southeast of San Francisco, said Janice Killian, a spokesman for the U.S. Bureau of Prisons.He is serving a 10-year sentence for securities fraud.
Milken, 44, was assigned to a bunk bed in one of 21 four-man rooms used by inmates, Killian said. She said he would spend the first week in orientation sessions.
Warden Loy Hayes said Milken would be assigned to a job paying between 12 cents and 40 cents an hour within a week.
Jobs at the 84-inmate work camp include roofing, cooking, motor repair and groundskeeping.
At the fallen brokerage house Drexel Burnham Lambert Inc., Milken pioneered use of high-yield junk-bonds to raise funds for risky companies and giant takeover bids.
Authorities said Milken would not enjoy special privileges and would be barred by prison regulations from wearing his toupee.
Milken will live in a renovated military barracks, share a 360-foot-square room with three other roommates and eat his meals in a cafeteria-style dining room similar to those found in a college dormitory. The building has no bars on the windows and is not routinely locked.
According to legal experts, the financier will probably serve three years of his sentence.