Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police

<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-8QtI7EQ1Ixo33Mvn66bvktNjB57OiHs0mCt-OHyLMbIcXLsHGuxnAotUCtF1pu0sjh8lVtKwsxR1Mzjk-FFzHRpbI7xqQ_8qg2OcGb20WQP9qNeYzhvJyXkDQPsCiqYVPwxpauVLf6jq/s1600-h/hedge.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5218903174117247698" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-8QtI7EQ1Ixo33Mvn66bvktNjB57OiHs0mCt-OHyLMbIcXLsHGuxnAotUCtF1pu0sjh8lVtKwsxR1Mzjk-FFzHRpbI7xqQ_8qg2OcGb20WQP9qNeYzhvJyXkDQPsCiqYVPwxpauVLf6jq/s400/hedge.jpg" style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;" /></a><br />Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police in Southwick Massachusetts, apparently after having a conversation with his mother.Israel,48, co-founder of a Connecticut based hedge fund-the Bayou Group, is accused of one of longest running frauds of the corporate world who was supposed to report for prison when he went missing. A federal investigation was triggered off when his GMC Envoy was found on a bridge above the Hudson River; with the words “suicide is painless” written in dust on its hood.Ann R. Israel, Samuel’s mother, had informed United States marshals that her son was planning to surrender before Samuel walked into the Southwick police station. Dave Turner, a spokesman for the marshals stated that Mrs. Israel had been in contact with Ed Farrell who is a deputy United States Marshal investigator with the Great Lakes Regional Fugitive Task Force in Illinois. He quoted, “the mother was concerned about her son’s welfare. It appears Mrs. Israel and other family members played an important role in Mr. Israel’s decision to face justice.” He stated that Mrs. Israel indicated to Mr. Farrell that her son was reaching out for help and her advice was to do the right thing and turn himself in.<br />Even though the police found the car keys and a bottle of pills in the vehicle, it was obvious to the authorities that Israel had faked his own death.<br />According to the authorities, Israel left his home in Armonk, N.Y early morning and then abandoned his GMC Envoy and moved to the recreational vehicle at a rest area off Interstate 684.His girlfriend Debra Ryan has already been arrested for being an accomplice to help Israel stage a fake suicide and escape.<br />After the dramatic enactment, Israel arrived later that day at the Prospect Mountain Campground RV Park in Granville, Massachusetts. He apparently spent the last four weeks at this campground, picking up supplies from a small store at the camp.<br />According to the camp’s director Mitch Hayes, Israel signed into the campground under the alias David Klapp. Mr. Hayes who does not recall seeing any visitors for him said that the campground can accommodate more than 200 families. He quoted, “He seemed like a nice guy. There was nothing really suspicious about him when he came to buy food and cigarettes.” Israel, under his mother’s influence, ultimately decided to surrender in Granville, Mass. But the bucolic town of 1,500 has only a part-time police department. When Mr. Israel found the station there closed, he headed seven miles east to Southwick on his scooter.<br />Despite a long history of back pain and other medical problems that were listed in his lawyer’s presenting memorandum, Mr. Israel apparently managed to travel easily on his motorized scooter.After driving up to the police station on a Yamaha scooter, according to Paul Miles, a Southwick police officer, Mr. Israel told officers: “I am a fugitive, I was supposed to go to jail and I’d like to turn myself in.”<br />Mr. Israel was kept in a cell in Southwick before being transferred to the federal courthouse in Springfield, Mass. He is scheduled to appear Thursday before Judge McMahon in Manhattan.Samuel Israel has battled addiction to painkillers and has a pacemaker. The scion of a wealthy New Orleans family, he now faces several more years in jail on top of the 20-year sentence he received in April for defrauding investors.Two former associates of Mr. Israel’s are already behind bars for their role at Bayou. All three had pleaded guilty to their crimes and were sentenced to 20 years in January.In sentencing Mr. Israel in April, US District Judge Colleen McMahon, who referred to him as the "mastermind" of the scheme, said: "Financial fraud, white-collar crimes are every bit as heinous as every other type of crime and they will be punished severely."

Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police

Samuel Israel III accused of engineering the $2 trillion hedge fund fraud surrendered himself to the police in Southwick Massachusetts, appa...

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