Bayou Group Founder A Possible Suicide

Jun 10 2008 | 2:00am ET

Bayou Group co-founder Samuel Israel failed to report to prison yesterday and may have committed suicide.

Israel was scheduled to report to federal prison yesterday to begin serving a 20-year sentence for his role in defrauding investors of $450 million at the collapsed hedge fund group. A car registered to him was found at the Bear Mountain Bridge, which crosses the Hudson River 50 miles north of New York City. Police say the words "suicide is painless" were found written in dust on the car's surface.

New York State police are looking into whether Israel, who had sought a more lenient sentence based on his numerous health problems and cooperation with the government’s investigation of Bayou, killed himself. No body has been recovered.

Israel was sentenced to 20 years in prison in April, after pleading guilty to fraud charges almost three years ago. Daniel Marino, who co-founded Bayou with Israel, received four-and-a-half years for his role, while former CEO Daniel Marino also received 20 years.

If Israel has committed suicide, he would be the second convicted hedge fund fraudster to end his life in three weeks. Kirk Wright, convicted of defrauding investors of more than $150 million in his International Management Associates, hanged himself in his jail cell over Memorial Day weekend. He was awaiting sentencing.

RELATED STORIES

Bayou’s Israel Gets 20 Years
Bayou Group Head To Be Sentenced Today
Bayou CFO Sentenced To 20 Years For Fraud
Bayou Group Founder Gets Four Years


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of