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Suicide of Former Bayou Management Hedge Fund CEO?

It is has been a bad month for Hedge Fund operators convicted of fraud. First, Kirk Wright committed suicide, and now the WSJ Law Blog is reporting that

"Yesterday, Samuel Israel III, the former CEO of defunct hedge-fund Bayou Management, was supposed to begin serving a 20-year prison term for fraud.

Today, New York State police are investigating the possible suicide of Israel, according to a report by Dow Jones Newswire's Chad Bray.

Bruce Cuccia, a state police senior investigator, said Israel's SUV was found yesterday afternoon, parked unattended with the keys in the ignition on the Bear Mountain Bridge in Westchester County.

The bridge crosses the Hudson River at one of its deepest points, Cuccia said. No suicide note was found, but written in the dust or pollen on the hood of the vehicle was, "Suicide is painless" -- an apparent reference to the "M.A.S.H." theme song. No body has yet been recovered.

I am going with: let's look for Samuel, say in a far away country. Don't see our boy just jumping in the creek, do you?

Just saw that Greg over at the Naked Shorts has similar skepticism: Saying Show Me the Body!

Also from Greg, why did the young Sam Israel commit this horrible fraud? Apparently, there was some weakness in young Sam, according to John Damgard, President,
Futures Industry Association.

The New York Times has some new details on Sam Israel's disappearing act:

"But not everybody is convinced that Mr. Israel committed suicide.

"I'll believe it when I see a body," said Ross B. Intelisano, a lawyer at Rich & Intelisano, a law firm in New York. The firm is representing 20 investors who lost about $25 million in the collapse of Bayou, which was based in Stamford, Conn.

"All of the clients I spoke to, their initial reaction was that it's a ruse. It's just another fraudulent act.""

My understanding, from purely confidential sources, is that Sam has joined Jerome Kerveil and will open a brand new trading company located in the Dominion
of Melcizedek.

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Full post as published by Misleading Advertising Law on June 10, 2008 (boomark / email).