Samuel Israel III, the hedge fund manager convicted of defrauding investors out of millions, who fled shortly before he was to report to prison, has reportedly turned himself in to authorities in western Massachusetts.
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Israel co-founded bankrupt hedge fund Bayou Group LLP and was
handed down a 20-year prison term in April for orchestrating a Ponzi scheme that squeezed investors out of $450 million. He was also ordered to pay $300 million in fines and surrender by June 9. Instead,
he disappeared. His car was found near the Bear Mountain Bridge in New York with the words "Suicide is Painless" traced across the hood in the dirt.
Ruling out suicide, the U.S. Marshals Service said June 17 it would treat the situation as a "fugitive investigation." Israel's girlfriend Debra Ryan was charged June 19 for allegedly helping him flee. Israel is expected to be
turned over to federal authorities later Wednesday, a Southwick, Mass., police department employee told The Associated Press. (See map from Wiki Commons below for the location of Southwick.) -
Carolyn MurphySee related: Taking bankruptcy on the lam gains momentumSee related: Bayou founder gets 20 years
