Hedge Fund Founder Israel Loses Health Bid to Leave Prison

Thursday, 07 Aug 2014 03:42 PM


  Comment  |
   Contact  |
|  A   A  
  Copy Shortlink
Former hedge fund manager Samuel Israel, who faked his own suicide to avoid prison after running a $450 million fraud, on Thursday failed to persuade a judge to shorten his 22-year sentence or set him free because prison officials are unable to treat his worsening health.

U.S. District Judge Colleen McMahon in Manhattan said the Bayou Group LLC founder's claim of inadequate care by the Federal Bureau of Prisons, which led to an alleged "near death experience," was not a legal basis to reduce his sentence, and that even if it were, he waited too long to sue.

McMahon in 2008 had sentenced Israel to 20 years for fraud; another judge later added two years for bail jumping.

"The driving consideration for the court in sentencing defendant to 20 years in prison was that he was the mastermind behind a $450 million Ponzi scheme," McMahon wrote.

"I may have taken Mr. Israel's medical needs into account when I gave him as little as 240 months; I assuredly would never have given him less, regardless of my perception of the quality of the BOP medical care," she added.

Shane Landry, a lawyer for Israel, did not immediately respond to requests for comment.

Israel, 55, pleaded guilty in 2005 to defrauding Bayou investors. He sparked a manhunt in June 2008 when his GMC Envoy was found on Bear Mountain Bridge north of New York City, with the words "suicide is painless" scrawled in dust on the hood.

He surrendered the following month, and is now housed in the same Butner, North Carolina, complex as Bernard Madoff.

In seeking a shorter sentence, Israel claimed he nearly died last year because prison officials had waited until after he had fallen, hit his head and lost consciousness to replace a battery for his pacemaker.

Israel also claimed to have been denied treatment for chronic pain linked to a degenerative spinal condition.

McMahon said if Israel wants to challenge his medical care in court, he should do so in North Carolina.

Israel is not eligible for release until Sept. 12, 2027.

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

OPEC Rocked by US Fracking, Can't Cut Production

Thursday, 27 Nov 2014 14:23 PM

OPEC took no action to ease a global oil-supply glut, resisting calls from Venezuela that the group needs to stem the ro . . .

Toyota Recalls More Cars for Dangerous Takata Air Bags

Thursday, 27 Nov 2014 14:26 PM

Toyota Motor Corp. recalled more vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and  . . .

Harvard's Feldstein: Low Oil Prices Help US as Iran, Russia Suffer

Wednesday, 26 Nov 2014 16:30 PM

Harvard economist Martin Feldstein says "the low price of oil is good news for the United States economy, because it imp . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved