June 11, 2008
Missing Hedge Fund Swindler Wanted by Authorities
A bench warrant was issued for the arrest of Samuel Israel III, the hedge fund founder who was convicted of scamming investors of $450 million. Israel was supposed to report for a 20-year prison sentence in Massachusetts on Monday, but instead, his empty car was found on the Bear Mountain Bridge with "Suicide is painless" written on the hood.
Speculation is high that Israel staged his death. NY State police investigator Bruce Cuccia said, "It looks like it could be either a suicide or a staged suicide, a fake suicide. Without a body, we don't have conclusive evidence either way." He added that it could take up to a week for a body to appear and wondered why Israel would be driving himself to prison, "What, do they have valet parking? It's 20 years. What's he going to do, park it?"
A police source told the Post, "We're not searching [the river] because it's widely presumed that he didn't jump." A lawyer for investors who lost money with Israel's Bayou Hedge Fund, Ross Intelisano, also expressed his skepticism to WCBS 2, "We have no idea how much money he stashed away. Until a body is produced I don't think anyone's going to believe he committed suicide." (Israel had been living in a $32,000/month rented Westchester mansion.) And scam victim Charles Gradanate believes "this could be his last, greatest con."
According to Inkling Markets, many believe he's in the Caymans or on the run [via Dealbreaker].
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Lamest suicide note (real or otherwise) EVER.
Also I wondered about the "driving himself to prison" bit.
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"It's 20 years. What's he going to do, park it?"
HOW did he get away with taking himself to jail? HOW? Investigate the Judge immediately.
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That is weird, about the driving himself. I'd think a lawyer would make sure his client serves a sentence... or where is the federal limousine service to pick him up?
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Rich people don't get the same treatment as you and I.
White collar criminals report voluntarily.
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Pretty pathetic.
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Hopefully he'll resurface soon so we can laugh at all the botched Venezuelan plastic surgery.
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Why he wasn't remanded into custody immediately after the verdict is a mystery to me. 20 years is a long time. He obviously had the means and motivation to abscond and he did just that.
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many white collar criminals after convicted report to prison.
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i hope some piss off investor, would help this guy commit real suicide.
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When the going got tough this guy chicken out.
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Samuel Israel III, a name you can trust in the industry.
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A quote from his friend in the Post:
But "Sam is a Christian man, and suicide, I don't think, was in his nature," said the friend, who requested anonymity.