Hedge fund fraudster 'gives himself up'

3 July 2008

A hedge fund scam mastermind gave himself up yesterday after a month of evading authorities.

Samuel Israel III, who admits to cheating investors in his Bayou fund of around $450 million, turned himself in to police near Boston, Massachusetts.

The fund manager originally went on the run in order to avoid a 20-year jail term for his actions.

He originally went missing on June 9th, the day on which he was due to go to prison, leaving his car by the Hudson River in New York with an apparent suicide note written in the dust on the bonnet.

However, police allege that Mr Israel's girlfriend then helped him to go on the run by leaving another car for him to use nearby; she has since been arrested.

At his trial earlier this year, the hedge fund manager was found to have claimed non-existent profits to investors, and to have falsified audits.

Prosecuting lawyer Ross Intelisano, speaking after Mr Israel went missing, commented: "This is a very crafty guy who was able to steal a lot of money from other smart people.

"My gut tells me he's not the type to jump off a bridge."

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