Samuel Israel III Pleads Guilty to Failing to Surrender
On September 29, 2005, Samuel Israel, III pleaded guilty to charges that he and Daniel E. Marino defrauded investors in the collapsed Bayou group hedge fund of more than $450 million. On April 14, 2008 Israel was sentenced to 20 years in federal prison. On June 9, 2008, Israel was scheduled to surrender himself to the Federal Medical Center in Devens, Massachusetts to start serving his 20 year sentence. However, Israel failed to show up at the Federal Medical Center and was a fugitive until surrendering himself to police in Massachusetts on July 2, 2008. On March 16, 2009, Israel pleaded guilty to a single count information charging him with failing to surrender in violation of 28 U.S.C. 3146. Israel is scheduled to be sentenced June 24, 2009 and could be sentenced up to an additional10 years in federal prison.
