No Early Release For Ailing Israel

Aug 8 2014 | 4:30am ET

When she sentenced hedge fund fraudster Samuel Israel to 20 years in prison six years ago, U.S. District Judge Colleen McMahon knew exactly what she was doing—and she isn’t having doubts.

McMahon has rejected Israel’s bid for an early release from the 22 years she sentenced him to—the extra two years were for bail-jumping. Israel argued that the Federal Bureau of Prisons wasn’t adequately treating his medical ailments and that he suffered a “near-death experience.” 

McMahon, who Israel’s lawyers once accused of being prejudiced against their client, once again wasn’t buying. She ruled that, even if Israel’s claims were true, they were no valid reason for getting out of jail, and that he waited too long to file his claim anyway.

Even if both of those factors weren’t an issue, McMahon wrote, she still wouldn’t free the Bayou Group founder.

“The driving consideration for the court in sentencing defendant to 20 years in prison was that he was the mastermind behind a $450 million Ponzi scheme,” she wrote. “I may have taken Mr. Israel’s medical needs into account when I gave him as little as 240 months; I assuredly would never have given him less, regardless of my perception of the quality of the BOP medical care.”

McMahon said that if Israel wishes to challenge that care, he must do so in North Carolina, where he is serving his sentence, and not in her Manhattan courtroom.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.