Bayou Fund Boss Gets 20 Years In Prison

Law360, New York (April 14, 2008, 12:00 AM EDT) -- A federal judge sentenced the co-founder of bankrupt hedge fund Bayou Group LLC to 20 years behind bars Monday for his role in a scheme that allegedly defrauded investors out of more than $450 million.

Judge Colleen McMahon of the U.S. District Court for the Southern District of New York also told Samuel Israel III to pay $300 million in restitution and ordered him to report to prison by June 9. When he emerges from prison, Israel will spend three years in supervised release.

Israel pled...
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