The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area. [More]
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4/27/2009
Another Bayou-Related Conviction
Hennessee Group Fined on Bayou Hedge Fund Due Diligence Failures
Bayou Hedge Fund Swindler Gets Note From Doctor, Goes to Medical Prison
Sam Israel Forced to Give Up His Scooter
U.S. Marshalls and Asset Recovery
Sam Israel's (Kinda Pathetic) Camground Hide-out
Major Letdown: Sam Israel Surrenders Undead Self to Authorities
So Where is Sam Israel?
White RV, New York License Plate EEN-5973
Sam Israel, Undead Fugitive
Disgraced Bayou Hedge Fund Boss Gets 20 Years
Bayou Financial Co-Founder Gets Four Years on Fraud Charges
Another Bayou-Related Conviction
Matthew Marino... brother of former bayou exec, Daniel Marino (already plead guilty).
Labels: Bayou Group, Daniel Marino, Matthew Marino, Sam Israel
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Hennessee Group Fined on Bayou Hedge Fund Due Diligence Failures
Hennessee Group, a New York-based investment adviser is facing a $800,000 fine from the SEC due to the firm's failure to perform promised due diligence of the Bayou Group hedge fund, once run by eventual death-faking, scooter-riding fugitive from justice, Sam Israel.
Bayou, of course, was one of the biggest hedge fund flame-outs of all time, with many of the fund's major players doing jail time. The SEC complaint details about 40 Hennessee clients who altogether has about $56 million invested inthe Bayou fund.
Hennssee head, Charles Gradante has neither confirmed or denied wrongdoing in the matter. While he hasn't commented on the specifics of his own case, Gradante has submitted a letter to the SEC with a variety of recommendations for how other migh avoid Hennessee's fate.
Amongst Gradante's recommendations - increased reguation of hedge fund borrowing and requiring that third parties, such has Kroll, be hired to conductforencic audits of hedge fund financial statements. More here, via Bloomberg.
-- MDT
11/06/2008
Bayou, of course, was one of the biggest hedge fund flame-outs of all time, with many of the fund's major players doing jail time. The SEC complaint details about 40 Hennessee clients who altogether has about $56 million invested inthe Bayou fund.
Hennssee head, Charles Gradante has neither confirmed or denied wrongdoing in the matter. While he hasn't commented on the specifics of his own case, Gradante has submitted a letter to the SEC with a variety of recommendations for how other migh avoid Hennessee's fate.
Amongst Gradante's recommendations - increased reguation of hedge fund borrowing and requiring that third parties, such has Kroll, be hired to conductforencic audits of hedge fund financial statements. More here, via Bloomberg.
-- MDT
Labels: Bayou Group, Fraud, hedge fund, Hennessee, Kroll, Sam Israel
Bayou Hedge Fund Swindler Gets Note From Doctor, Goes to Medical Prison
I know I am a little late posting this, but the past week has been all election all the time, so I apologize for my tardiness. If you have yet to read about the latest turn in the twisted tale of fraudster (and former dead guy), Sam Israel you can do so right here.
-- MDT
8/01/2008
-- MDT
Labels: Bayou Group, hedge fund, Sam Israel
Sam Israel Forced to Give Up His Scooter
Oh the humanity!
A new low for the former hedge fund fugitive.
-- MDT
7/31/2008
A new low for the former hedge fund fugitive.
-- MDT
Labels: Bayou Group, hedge fund, Sam Israel
U.S. Marshalls and Asset Recovery
Cool piece from Bloomberg on this - had no idea.
Look for cameos and colorful anecdotes involving some of your fave white collar crooks.
-- MDT
7/02/2008
Look for cameos and colorful anecdotes involving some of your fave white collar crooks.
-- MDT
Labels: asset recovery, Bayou Group, Kroll, Sam Israel, U.S. Marshalls
Sam Israel's (Kinda Pathetic) Camground Hide-out
As white collar fugitive bolt-holes go, this is so, soooo weak. Rolling into the police station on a Yamaha scooter because his mama told him to? Seriously? This is our $2 trillion arch criminal mastermind?
I am so deflated.
-- MDT
I am so deflated.
-- MDT
Labels: Bayou Group, fugitive, hedge fund, Sam Israel
Major Letdown: Sam Israel Surrenders Undead Self to Authorities
And here I hoped that the fugitive hedge fiend show would run all summer long...
I guess I'm back to Matlock reruns. That and Season Three of The Wire!
-- MDT
I guess I'm back to Matlock reruns. That and Season Three of The Wire!
-- MDT
Labels: Bayou Group, fugitive, Sam Israel
So Where is Sam Israel?
Here's a few thoughts on the Israel disappearance from former FBI Agent, Paul Hayes, now managing director of Corporate Resolutions, a NY-based corporate investigative firm.
-- MDT
6/29/2008
-- MDT
Labels: Bayou Group, Corporate Resolutions, Paul Hayes, Sam Israel
White RV, New York License Plate EEN-5973
If you've seen it, you've potentially laid eyes on the highly styling ride of the recently un-departed hedge fund fraudster and fugitive from justice, Sam Israel.
Meanwhile, at least some folks have found a way to make something good happen over Israel's shenanigans. Own a piece of history for yourself.
Something not good would be the prospects for Israel's girlfriend, Debra Ryan. She could be facing 10 years for her part in Israel's elaborate dodge of his own twenty year fraud sentence.
-- MDT
6/17/2008
Meanwhile, at least some folks have found a way to make something good happen over Israel's shenanigans. Own a piece of history for yourself.
Something not good would be the prospects for Israel's girlfriend, Debra Ryan. She could be facing 10 years for her part in Israel's elaborate dodge of his own twenty year fraud sentence.
-- MDT
Labels: Bayou Group, Debra Ryan, Sam Israel
Sam Israel, Undead Fugitive
The Feds seem all but certain that the Bayou hedge fund founder's suicide was mere window dressing to a disappearing act.
I must confess... I love it when they run. As to why he'd run? If you need a reminder, try Bloomberg. Something to do with starting a 20 year prison sentence, I'd think.
-- MDT
4/15/2008
I must confess... I love it when they run. As to why he'd run? If you need a reminder, try Bloomberg. Something to do with starting a 20 year prison sentence, I'd think.
-- MDT
Labels: Bayou Group, Fraud, fugitive, hedge fund, Sam Israel, suicide
Disgraced Bayou Hedge Fund Boss Gets 20 Years
Sam Israel presided over the spectacular $40 million flame-out of the now defunct hedge fund, Bayou Group. Bayou was the hedge fund fraud and failure that really put the subject on the front page - not just the business pages. This week Israel got his comeuppance - a sentence of 20 years and an order to forfeit $300 million to compensate his former investors for their losses.
Now if Israel had that kind of money at hand, doubtless Bayou would still be in business, so who knows whether those bilked by Bayou have any realistic chance of reclaiming their money. Still, the knowledge that Israel (and his previously convicted Bayou co-horts) will be spending a significant number of years behind bars might provide some small solace.
Or not...
-- MDT
1/22/2008
Now if Israel had that kind of money at hand, doubtless Bayou would still be in business, so who knows whether those bilked by Bayou have any realistic chance of reclaiming their money. Still, the knowledge that Israel (and his previously convicted Bayou co-horts) will be spending a significant number of years behind bars might provide some small solace.
Or not...
-- MDT
Labels: Bayou Group, Fraud, hedge fund, James Marquez, Sam Israel
Bayou Financial Co-Founder Gets Four Years on Fraud Charges
James Marquez, co-founder of Bayou Financial, plead guilty in December of 2006 to participation in the $400 million fraud arising from his former firm (Marquez left Bayou in 2001).
Sentenced just this week, Marquez, in addition to spending a little over four years in prison and another two years under supervised release, Marquez is expected to pay over $6 million in restitution.
Two other former Bayou executives, Sam Israel and Daniel Marino have also plead guilty in relation to the fraud.
For further details on the Marquez sentencing, check out CNNMoney.
--MDT
Sentenced just this week, Marquez, in addition to spending a little over four years in prison and another two years under supervised release, Marquez is expected to pay over $6 million in restitution.
Two other former Bayou executives, Sam Israel and Daniel Marino have also plead guilty in relation to the fraud.
For further details on the Marquez sentencing, check out CNNMoney.
--MDT
Labels: Bayou Group, Daniel Marino, Fraud, hedge fund, James Marquez, Sam Israel
