Hedge Fund Cheat: Suicide Attempt Was Real

Swindler Faces Another 10 Years For Going On The Lam The Day He Was Supposed To Start Serving His Sentence

(CBS/ AP)  A hedge fund cheat who faked his own death to dodge a 20-year prison sentence told a Manhattan judge Thursday that he did actually try to commit suicide this week, having swallowed morphine tablets and the painkiller fentanyl on Tuesday.

But if it was a plea for sympathy, it didn't work. The judge told him that he must forfeit his $500,000 dollar bail.

Samuel Israel III, who was already facing a 20-year sentence when he went on the lam after faking a suicide last month, could now get an extra 10 years if convicted of a new charge of failing to report to prison.

The massive manhunt ended yesterday, when Israel rode a scooter to surrender at a Massachusetts police station.

The judge ordered him to rise after he'd abruptly sat down while she was speaking. She said: "If you can ride a motorcycle, Mr. Israel, you can stand up in my courtroom."

Israel had disappeared on the day he was to report to prison. He abandoned his SUV on a bridge in suburban New York City with the words "Suicide is Painless" scrawled in dust on the hood.

He was sentenced in April for conspiracy and fraud for scamming half a billion dollars from investors. The beginning of the end for a financier on the run came when he reached out to his sister-in-law. She then called her mother, who in turn called a man she had grown to trust at the U.S. Marshals Service.

Israel told his family early Wednesday that he was considering surrendering.

His mother asked Ed Farrell, a supervisory inspector on the U.S. marshals' Fugitive Task Force in Chicago, to promise her son's safety.

"I said, `We'll assure his safety,'" Farrell said.

About 15 minutes later, Ann Israel called back to say her son had just given up his freedom.

Sure enough, Samuel Israel had driven to a small-town police station in Massachusetts on his scooter and surrendered while talking to his mom on his cell phone.

"It was great," Farrell said. "The best part is it was resolved peacefully."

Israel asked during a court appearance in Springfield, Mass., on Wednesday to go directly to the federal medical prison in Massachusetts where he is supposed to be serving his 20-year sentence.

Judge Michael Ponsor denied the request, forcing him to face an additional charge in New York of failing to surrender to serve a federal sentence. If convicted, he could be sentenced to 10 more years in prison.

Israel disappeared June 9, the day he was to report to prison. His SUV was found abandoned on a bridge over the Hudson River in a New York City suburb with the words "Suicide is Painless" - the theme song for the "M*A*S*H" television show - scrawled in dust on the hood.

Authorities scoured the river for a body and quickly determined that the suicide was a ruse - that Israel fled in his white recreational vehicle with a scooter and his belongings. He was thought to be staying at RV parks, campgrounds or highway rest areas. Authorities also arrested Israel's girlfriend on charges that she helped her lover elude the government.

Israel did not have a lawyer with him at his court appearance Wednesday. His lawyers did not return phone messages. His mother refused comment when reached at her home in Illinois.

Frank Dawson, a U.S. Marshals Service spokesman in Boston, said Israel "knew they were getting close to him, so he probably did the right thing."

Israel's RV was found in Granville, Mass., officials said. He had planned to surrender there, but the town's part-time police department was closed, so he rode a motor scooter to nearby Southwick to turn himself in, authorities said.

Israel walked into the police station wearing a T-shirt and shorts, identified himself and said he was a fugitive wanted by the federal government, officials said.

"He was polite, very contrite and a perfect gentleman at all times," Southwick police Officer Paul Miles said.

It was a humbling fall for Israel, who once enjoyed the glamour of an investment banking and hedge fund career that gave him a home in the playpen of the rich. He once rented a house from Donald Trump for $32,000 a month.

Complicating Israel's time on the run were his medical problems. He has had nine back surgeries, wears a pacemaker and is addicted to painkillers, according to prosecutors.

His ailments - along with 2½ years of cooperating with authorities - helped him get less than the maximum 30-year sentence. Judge Colleen McMahon also granted him two months to surrender to prison after he was sentenced.

Farrell, of the Marshals Service, said he had met with family members who live in the Chicago area to encourage them to help investigators if they were ever contacted by the fugitive.

He said he met for 2½ hours a week ago with Israel's parents, Ann and Larry Sr.

"It's more just garnering trust," he said. "You're a complete stranger saying, `You don't know me, but I want you to trust me."'

[extremophil]

Smug S.O.B.

[whiskyrocker]

Too bad he failed.

[godofredo29]

Fentanyl...that''s the stuff that killed my sister. I thought they had recalled that stuff.

[bogusbones]

hedge funds - the biggest and most lucrative financial scam of the century. buying companies, tearing them apart to the cost of labor and production of a product. unregulated so a tiny % of hedge fund scammers (er traders) can make ungodly money at the expense of unsuspecting and unfortunate people. they are the fruit of unregulated and greedy capitalism. ask this bloated pig how many lives his hedge fund trades have ruined. he is the epitome of what is wrong with our system. trading to make $$$$ without any realizable goods or services being produced. have him look into his rotted soul and ask what has he done for anyone except for himself? don''t let him die, send him to guantanamo.

[nothappyatall]

I said, `We''ll assure his safety,''" Farrell said. "

LOL who cares? he faces 30 years in jail NOW, he will either be about 80 then or die in prison

[Gary Kempf]

Yea it was real, thats why he drove a RV to campground prior to the suicide attempt. Was that so he would someplace to haunt after killing himself?

[kennedy7955]

The average murderer serves on 8 years in jail. We will see how long this guy stays in the pen.

[floydzepp2]

Yeah, Riiiiight.

[ianlou]

All is not lost for him, he was sleezy and rich enough to be a friend of Bush''s, maybe hell get an executive pardon.

[credibility2]

Was the judge this moronic as to have been convinced that even with a $500k bail, this creep would''ve actually reported promptly to begin his twenty year sentence, after stealing half a billion? Are judges that stupid? At best, Israel should have been met by armed sheriff deputies and taken him into custody the day he was supposed to report. Remember the theatrics and over-kill when Paris Hilton was hauled off and this after she was let go by the sheriff? Half a billion and all he gets is a lousey twenty-year sentence, which means he won''t do all of it, while countless investors were duped and left in this thief''s dust. He still has lots of moola stashed somewhere just waiting for the day he gets out and thumbs his proverbial nose at everyone, especially the judge!

[missingamerica]

Yea it was real, thats why he drove a RV to campground prior to the suicide attempt. Was that so he would someplace to haunt after killing himself?

Posted by navpro at 01:47 PM : Jul 03, 2008

Hey, ghosts need to cook their beans''n''weenies too, ya know.

They taste like *** cold.

[drivelphobe]

This guy doesn''t deserve 20 years. He didn''t really do much wrong except outsmart some people just as crooked as he is. All these investment guys are alike, thriving on commissions based on scamming anyone with investment dollars under their influence. They all get what they deserve.

How can he get more time than child molesters?

Let''s see.....he gets 20 years for doing what all investment counselors do, and 10 years for trying to get away! Boy isn''t justice logical!

I say give him his $500,000 back and turn him loose so he can enjoy the rest of his life.

[Gary Kempf]

Hey, ghosts need to cook their beans''''n''''weenies too, ya know.

They taste like *** cold.


--------------------------------------------------------------------------------

Posted by ibsteve2u

It would be nice to believe this Scum would end chocking to death while eating beans and weenies.

[ianlou]

All is not lost for him, he was sleezy and rich enough to be a friend of Bush''''''''s, maybe hell get an executive pardon."

Posted by ianlou at 02:02 PM : Jul 03, 2008

A typical example of BDS (Bush Derangement Syndrome). What do you say we take a trip down memory lane to all the criminals Clinton pardoned, eh? It''''s the Dems that pull those sorts of things but their apostles (including the media) never hold them accountable. Posted by ritewingman

I wonder if they are close enough that Bush gave him a nick name like he did for Ken Lay. (Kenny Boy)

Lets see, Samuel Israel:
Considering Bush''s immagination I bet it would be Sammy Boy.

[gkc99]

"I say give him his $500,000 back and turn him loose so he can enjoy the rest of his life. "--Posted by drivelphobe


You may have a point. He''s learned from his betters, the Bushit neocons.

Lie, cheat and steal, and if you get caught, buy the judge and imprison the jury.

"Who''s to doom, when the Judge himself is dragged before the bar?"

A real American hero.

[patriot12436]

I want to know if he was required to return the money to the investors ? I think part of his sentence should be to earn money he spent to return to incestors and pay for the cost of searching for his suicide attempt at hiding his body and for thecost of keeping him inprisoned. Obvilusly he can make money, let him work from prison to support himself.

[sistatee-2009]

Don''t let him die! We don''t need any hedge fund martyrs!

[offtheback]

Take every dime and possesion from him and all of his friends and reletives and that still won''t be enough. He will still end up out in a few years with more money than any of us will ever see and just like Mike Milken, teaching economics at some prestegious university raising the next crop of billionair crooks. Thanks Ronnie RayGun.