Israel Pleads Guilty To Bail-Jumping, Faces 10 More Years

Mar 17 2009 | 3:23am ET

More than nine months after he went on the lam, convicted hedge fund fraudster Samuel Israel has admitted that he jumped bail.

Israel pleaded guilty to failure to report to prison yesterday. His plea had been delayed three times as he underwent treatment for drug addiction and then a medical and psychological evaluation.

The Bayou Group founder, who was sentenced last April to 20 years in prison for his role in the scandal that cost investors $450 million, will be back in the White Plains, N.Y., federal courtroom on June 24 for sentencing. The 49-year-old faces as much as 10 years in prison on the bail jumping conviction; the sentences are to run consecutively, rather than concurrently.

Israel went missing on June 9, the day he was to report to prison to begin his sentence for the Bayou fraud. His sports utility vehicle was found idling on a bridge north of New York City that day with the words, “suicide is painless,” written in the dust on its hood.

Authorities never believed he had taken his life, and immediately commenced a manhunt. His girlfriend was arrested and admitted she helped him pack to go on the run, and Israel surrendered to authorities in Massachusetts three weeks later.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat