Arrest Warrant Issued For Missing Bayou Fraudster

Jun 12 2008 | 2:00am ET

A federal judge has issued a bench warrant for the arrest of Samuel Israel, the Bayou Group co-founder who make have faked his suicide to avoid reporting to prison.

The warrant was issued Monday—the day that Israel was to report to a Massachusetts prison to begin a 20-year sentence for defrauding investors of $450 million—but not announced until yesterday.

Israel’s SUV was found on the Bear Mountain Bridge, 40 miles north of New York City, on Monday afternoon. It had the words “suicide is painless” etched in the dust on its hood, but Israel’s body has not been found, despite days of searching the Hudson River below.

“At the request of the U.S. Attorney’s Office that same day, United States District Judge Kenneth M. Karas issued a bench warrant in White Plains federal court for Israel’s arrest,” Michael Garcia, U.S. attorney for the Southern District of New York, said. “The United States Marshals Service and Federal Bureau of Investigation are actively searching for Israel and have not ruled out any possibilities.”

The FBI reportedly believes that Israel was picked up from the bridge by another vehicle and spirited away.

“A dose of professional skepticism is appropriate,” FBI spokesman Jim Margolin told USA Today. “We are taking certain steps to ensure he doesn’t leave the country.”

He added, “we and the marshals will continue to look for him until we find him, in whatever condition he may be.”

RELATED STORIES

Feds Suspect Israel Faked Suicide
FBI, Marshals Hunt For Missing Bayou Fraudster
Bayou Group Founder A Possible Suicide
Bayou’s Israel Gets 20 Years

Bayou Group Head To Be Sentenced Today


In Depth

Hedge Fund Selection: Sussex Partners’ Patrick Ghali Bullish On The Best Of The Best

Oct 2 2014 | 5:56am ET

Ten years ago, Patrick Ghali and Robin Nydes co-founded Sussex Partners with the...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.