Bayou’s Israel Back In Court Today

Aug 6 2008 | 9:29am ET

Convicted—and now imprisoned—hedge fund fraudster Samuel Israel will be back in court this morning to face charges stemming from his more than three weeks on the run earlier this summer.

Israel will face U.S. Magistrate Judge Lisa Margaret Smith in federal court in White Plains, N.Y., according to both his lawyer and the U.S. Attorney’s office. His lawyer, Barry Bohrer, told Reuters that he expects a “straightforward” hearing about Israel’s disappearance on the day he was scheduled to report to prison to begin a 20-year sentence for his role in ripping Bayou Group investors off to the tune of $450 million.

Israel is likely to face additional prison time.

The Bayou founder pleaded guilty almost three years ago to conspiracy to commit investment adviser fraud. U.S. District Judge Colleen McMahon sentenced him in April but allowed him to remain free on bail until reporting to a federal prison hospital in Ayer, Mass., on June 9.

But Israel never showed up—his SUV was found idling on a bridge north of New York City with the words “suicide is painless” scrawled on the hood. Authorities never really believed that Israel had ended his life, and began a manhunt that ended when Israel surrendered to authorities on July 2.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of