"Suicide" Swindler Surrenders

(AP)  A fugitive hedge-fund swindler who faked suicide on a Hudson River bridge and went on the run to avoid a prison sentence surrendered Wednesday in Massachusetts, the U.S. attorney's office said.

Samuel Israel turned himself into Southwick, Mass., police between 9:15 and 9:30 a.m. Wednesday, said Suzanne Anderson, police Chief Mark Krynicki's assistant. She said he was being processed at Southwick Police headquarters and referred all further questions to federal authorities.

U.S. Marshal Joseph Guccione in Manhattan said law enforcement authorities were aggressively pursuing Israel when he surrendered in Southwick, about 95 miles away from the federal prison in Ayer, Mass., where Israel was supposed to have reported last month.

"We believed he was in the country and that's why we continued our massive manhunt," he said.

A call to Israel's lawyer, Lawrence S. Bader, wasn't immediately returned.

Israel, already facing a 20-year term for conspiracy and fraud, was likely to be charged with failing to surrender to serve a federal sentence, authorities said. He was expected to appear later Wednesday in federal court in Springfield, Mass.

Israel disappeared June 9 on the day he was supposed to report to prison. His car was found on a bridge over the Hudson River with the words "Suicide is Painless" - the title of the theme song for the "MASH" television show - scrawled in dust on the hood.

Because no body was found beneath the 150-foot-high bridge where his car was abandoned, authorities believed from the start that he faked his disappearance.

The 48-year-old Israel, a co-founder and chief executive of the now-collapsed Bayou hedge funds, was sentenced in April to 20 years in federal prison for conspiracy and fraud. He was also ordered to pay $300 million to his victims.

Prosecutors said he and two other men persuaded investors to put $450 million into the Stamford, Conn.-based company by announcing nonexistent profits and providing fake audits.

Meanwhile, they made millions in commissions on trades that lost money for investors. The fund's collapse prompted calls for stricter oversight.

Officials said that after Israel abandoned his car, he took off in a white recreational vehicle carrying a motor scooter and his belongings. He was believed to be staying at RV parks, campgrounds or highway rest areas.

Southwick, where Israel turned himself in, is near the Connecticut line about 100 miles southwest of Boston.

Israel's girlfriend, Debra Ryan of Armonk, was arrested 10 days after his disappearance and charged with aiding and abetting his escape.

Authorities say Ryan confessed that on the day Israel was to surrender, she drove her car and he drove the RV to a rest area about 55 miles north of New York City. Israel parked the RV there, and the two drove back to their home.

Ryan could face as many as 10 years in prison if convicted in the scheme.

[oneworldusa]

Why does the system ''sentence'' someone in April and then allow them to be free and expect them to ''show up'' in June? He''s had years of freedom and a high and mighty lifestyle at the expense and loss of others to the tune of $450 million.

He should not have had bail or freedom between his conviction, sentencing, and report date. What a sissy-man. Put him in with the general population.

[toldyouso12]

Give him life. He does not even have the decency to be chagrinned for what he has done or how he was caught.

[apprxam]

bye. maybe this time.

[patriot12436]

My question is did they seize his assetts and give them to the victims ?

[libsluv2spit]

THIS GUY NEEDS TO PAY......

how much is the market price for body parts these days?? NOT ENOUGH!

[libsluv2spit]

Just look at this guys picture. YEP he sure is a Neocon, ya can tell by the way hes talking out the corner of his mouth.


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Posted by bubbabear200 at 03:59 PM : Jul 02, 2008
+ report abuse

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yep! and he is smart enough to surrender in the most liberal state in the union..those liberals are too weak and stupid to properly lay justice on this guy..

[jerriemc23]

man i should''ve killed myself after all, or perhaps done a better fake suicide.

[bubbabear200]

Just look at this guys picture. YEP he sure is a Neocon, ya can tell by the way hes talking out the corner of his mouth.

[pollroller1]

They will have to let him out early to make room for the crack smokers.

[gkc99]

Neocons don''t like government regulation, and they love that big money they get from the "financial services" sector.

So Israel was just doing what comes naturally as a crook when the greater crooks running the government, i.e., the Bushits, look the other way.

When you have crooked cops, the criminals are free to operate, as long as the cops get paid off.