Hedge Fund Cheat: Suicide Attempt Was Real

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."'