Monday, April 14, 2008
Former Bayou hedge fund executive Samuel Israel III was sentenced to 20 years in prison for defrauding investors out of over $450 million. He was also ordered to pay $300 million in restitution. Israel pleaded guilty to conspiracy and investment adviser fraud; the judge called him the "mastermind" of the fraud. WSJ, Bayou Hedge Fund Chief Israel Sentenced to 20 Years in Prison.