Newsflash


NEW YORK (CNN) -- He's wanted for bilking his former clients out of hundreds of millions of dollars.

But did Samuel Israel III kill himself or fake his own death to escape a 20-year prison sentence? That's what authorities in New York are trying to figure out after he disappeared this week.

Israel, who co-founded Bayou Hedge Fund, pleaded guilty in 2005 of stealing more than $450 million from his clients. For the past three years, he's been out on bail and cooperating with prosecutors to help them recover some of the money.

He was supposed to report to prison Monday in Massachusetts to begin a 20-year sentence. Police said Israel left his home in Armonk, New York, about an hour outside Manhattan, about 9 a.m. and told his live-in girlfriend, "I'm driving to prison."

Israel's 2006 GMC Envoy was found about 12:30 p.m., parked on the Bear Mountain Bridge, high above the Hudson River in upstate New York. Authorities said the keys were in the ignition, but Israel was nowhere to be found.

Investigators are trying to determine whether he left what could amount to a suicide note scrawled in the dust and pollen on the hood of his car: "Suicide is Painless." The phrase is the name of the theme of the "MASH" television show, which also played during a fake suicide in the original movie.

With no other clues, investigators began trolling the Hudson River in search of Israel's body.

"We'll continue to search, if it takes a week, a month, you know, the rest of the summer," said Sgt. Dennis Stoll of the Rockland County Sheriff's Department.

Israel, 48, grew up in New Orleans, Louisiana. His father was a trader and the family was wealthy. He was divorced. Those who knew him describe him as charismatic. He was not in the best physical health; he wore a pacemaker and had endured nine back surgeries.

Ross Intelisano, an attorney representing 20 former clients of Bayou Hedge Fund who collectively lost $25 million, said Israel considered his 20-year prison sentence a death sentence and didn't expect to live that long.

"The former employees I spoke to said he wouldn't last a day in jail. So I don't know if he has the makeup to sit 20 years in jail," Intelisano said. "I think he's been living sort of a lie for so long, that I don't think it's that much a stretch for him to potentially put on this ruse, if that's what it is, and just try to escape."

Israel's attorney did not return calls from CNN.

U.S. Attorney Michael Garcia, apparently doubting that Israel committed suicide, has issued a warrant for his arrest. The FBI and U.S. Marshals haven't ruled out any possibilities. The Marshals are reportedly questioning a possible getaway driver who was seen on the bridge.

A spokesman for the New York state bridge authority said there are four security cameras on the bridge that are not monitored and are not very sophisticated. In fact, CNN has learned that the cameras might not be good enough to tell the difference between a car and a truck, let alone detect a person jumping off the bridge.

This isn't the first time authorities have investigated a possible suicide in the Bayou Hedge Fund case. When the fraud was exposed, Israel's business partner, Dan Marino, left a suicide note. He called it a "combined confession and suicide letter."

In the end, Marino didn't take his own life. He is serving a 20-year sentence for fraud, in the same prison where Israel is supposed to be.

Samuel Israel III

Samuel Israel III pleaded guilty to stealing more than $450 million from his clients of Bayou Hedge Fund.

 



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Home arrow Blog arrow Iraq's Cabinet approves U.S. security pact
Iraq's Cabinet approves U.S. security pact PDF Print E-mail
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Sunday, 16 November 2008

Members of the Iraqi Cabinet vote on the security agreement Sunday in Baghdad. 

The agreement sets June 30, 2009, as the deadline for U.S. troops to withdraw from all Iraqi cities and towns, Iraqi government spokesman Ali al-Dabbagh said.

The date for all troops to leave Iraq will be December 31, 2011, he said.

These dates are "set and fixed" and are "not subject to the circumstances on the ground," he said.

Twenty-seven of the 40 Cabinet members in attendance voted in favor of the agreement, said Iraqi Foreign Minister Hoshyar Zebari. One minister abstained.

The Cabinet consists of the prime minister, two deputy prime ministers, and 37 other ministers.

The approved draft will be sent to the Council of Representatives, Iraq's 275-seat parliament, later Sunday, where it will be put to another vote. "There is great optimism that they will pass it," said Industry Minister Fawzi Hariri.

Al-Dabbagh said the parliament speaker and his deputies will decide when the parliament will vote on the agreement. He said there were "positive attitudes" when the major political blocs met to discuss the draft plan on Saturday.

Zebari said the parliament will reach a decision before it takes a 15-day recess on November 25.

In Washington, a spokesman for the National Security Council described the agreement as "an important and positive step."

"While the process is not yet complete, we remain hopeful and confident we'll soon have an agreement that serves both the people of Iraq and the United States well, and sends a signal to the region and the world that both our governments are committed to a stable, secure and democratic Iraq," said Gordon Johndroe.

"While there is still much work to be done, U.S. forces continue to return home and there will be 14 Brigade Combat Teams at the end of this year, down from 20 at the height of the surge," he added.

Earlier, Sami al-Askari, an adviser to the Iraqi prime minister, said the draft included changes that made it "satisfactory" for the Iraqis.

For months, the United States and Iraq have been negotiating a proposed status of forces agreement. It would set the terms for U.S. troops in Iraq after the U.N. mandate on their presence expires at the end of this year.

Many Iraqi officials say they will oppose any deal that hints at compromising the country's sovereignty.

Iraqi cleric Grand Ayatollah Ali al-Sistani said in a statement on his official Web site last week that he will "forbid any stance that targets the sovereignty of Iraq no matter how small it is."

In late October, Iraqi officials submitted several amendments to the draft plan to U.S. negotiators in Baghdad.

Zebari said at the time that the proposed changes called for a fixed timetable for U.S. troop withdrawal; a specific number of sites and locations that would be used by the U.S. military; and Iraqi jurisdiction over U.S. forces who commit certain crimes in Iraq.

Al-Dabbagh said the Cabinet on Sunday also approved a "draft framework" agreement between the U.S. and Iraq.

This agreement "establishes the principles of cooperation and friendship in the political, diplomatic, educational, health and environmental fields in addition to economic, energy, information technology, communication fields," al-Dabbagh said.



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Last Updated ( Monday, 17 November 2008 )
 
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