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                                                                                                     AP Photo/Craig Ruttle
Samuel Israel III, right, arrives at the U.S. Courthouse in New York, Monday,
April 14, 2008.

Samuel Israel Surrenders to Authorities

June 17, 2008 12:03 PM
by Cara McDonough
Samuel Israel, the fugitive hedge fund manager who faked his suicide to avoid prison, turned himself in to police custody Wednesday.

30-Second Summary

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Israel had been on the run from police since June 9, the day that he was scheduled to report to a Massachusetts prison. He never arrived and his abandoned car was found near the Bear Mountain Bridge in New York with the message “Suicide is Painless” written on the windshield.

Following Israel's mysterious disappearance, police aircraft and boats began searching the river for his body. When they could not find his body or any witnesses who saw a man jump, they determined that the suicide was a hoax.

They issued a Wanted poster for Israel, and one official told CBS News there was “reason to believe he may be potentially prone to erratic or violent behavior.”

Israel, the cofounder of the Stamford, Conn., hedge fund Bayou Group LLC, had been set to serve 20-year sentence for defrauding Bayou investors of more than $400 million. Israel, along with Bayou chief financial officer Daniel E. Marino, pled guilty to fraud charges in September 2005. Israel had shut down the hedge fund only months before, admitting it was a fraud.

Headline Link: Israel a 'fugitive'

Background: The search for Israel and Bayou’s fall

The Search for Israel

Related Topics: Other suicides related to financial scandals

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