Hedgie who faked suicide seeks prison release after almost dying

Mouth Julia Freeman Woolpert

'Suicide' ain't painless.

Bayou Group co-founder Samuel Israel, who faked his suicide and fled after pleading guilty to a $400m fraud, seeks release from prison claiming he almost died from poor medical care.

Bloomberg reports that Israel, 54, claimed in papers filed Wedneday in Manhattan federal court that he almost died of a chest infection in May 2013 as a result of 'gross medical malpractice' at the North Carolina federal prison complex where Bernard Madoff is also a prisoner.

Israel said the prison retaliated against him and unjustifiably withheld pain medication after he scraped off and ate a prescription pain-medication patch.

Israel founded Bayou in 1995 with James Marquez. After the company lost money in 1998, Marquez and finance chief Daniel Marino created a phony accounting firm to serve as the company’s external auditor, Israel said when he pleaded guilty in 2005. Rather than disclose modest losses, Bayou reported profits, Israel said. Bayou filed for bankruptcy in May 2006.

Israel is asking U.S. District Judge Colleen McMahon to reconsider the 22-year prison term she gave him based on the actions of prison officials. Israel is confined in a low-security prison in the complex.

In addition to the prison sentence, Israel was ordered to pay $300m in restitution.

Israel, on the day he was to report to prison in 2008 to serve 20 years for the fraud, faked his death by abandoning his car on a New York bridge with the words 'suicide is painless' written on the windshield. Israel, who was taken into custody after 23 days on the run, was sentenced to an additional two years. He’s due to be released in September 2027.

To access the complete Bloomberg article hit the link below:

Bayou's Israel Seeks Prison Release Over Medical Care

Goldman's Bullish on Boston Bloods Staying Out of Jail 


JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News