Conrad Black is now at a Palm Beach, Fla., mansion after a Chicago judge set him free on a $2-million bond and ordered him to remain within the United States.
Gary Miller, a spokesman for the prison in Coleman, Fla., confirmed earlier Wednesday that Black had been discharged.
"I can confirm he's no longer in our custody," he said.
Witnesses said Black left via a back exit, with a decoy SUV leaving a front entrance to throw off reporters.
Black's bail hearing began in the Chicago courtroom of Judge Amy St. Eve just before 10 a.m. ET.
CTV's Richard Madan reported that the bond money was put up by Roger Hertog, a businessman and long-time friend of Black.
Inside the courtroom, it was disclosed that Black holds a United Kingdom passport and his lawyers want him to be able to return to Canada.
Miguel Estrada, the lawyer representing Black, told the judge that "his home is in Canada."
The judge said Black will be restricted to travelling within the United States for now.
He must submit a financial affidavit, which the judge will later use to decide whether Black can travel outside the U.S.
Black has been serving a six-and-a-half-year sentence for three counts of fraud and one count of obstruction of justice.
But he recently was granted a motion for bail that will allow him to go free while he awaits resolution of his appeal of his fraud conviction -- which appears to be on shaky ground after the U.S. Supreme Court decided the law used to convict Black was too vague.
His Wednesday morning bail hearing took place more than 1,800 kilometres away from the Coleman, Fla., prison where the 65-year-old Black has been serving his sentence for the past 28 months. He did not attend court Wednesday.
During the bail hearing, Workman reported that Black's wife, Barbara Amiel, was in the Orlando area – about an hour away from the prison.
Those who have followed the case closely say Black has long predicted he will be proven as innocent in the end.
George Tombs, author of "Robber Baron: Lord Black of Crossharbour," said Black "is a person who is absolutely determined to go to the very end of this legal saga and he's never -- I don't believe -- lost faith or lost hope that he would ultimately prevail."
Tom Bower, the author of "Conrad and Lady Black", said it appears prison has not changed Black's view that he has been victimized by the U.S. justice system.
"He seems to be pretty robust and confident that he will be justified and resurrected as a man who has been a victim of a miscarriage of justice," Bower told CTV's Canada AM during a telephone interview from London on Wednesday morning.
"I think Barbara has probably suffered more because she has been alone and has not got his amazing resilience."
Tombs predicts Black is likely to stay the night in Palm Beach, where he has spent much of his time over the past three decades.
"If he does get out today…I imagine that he would head for Palm Beach where he has had a residence for many years. He's been going on holidays there since the early 1980s," said Tombs.
With files from The Associated Press, The Canadian Press and a report from CTV's Washington Bureau Chief Paul Workman
