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THURSDAY, NOVEMBER 26, 2009
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With No Body, Cops Doubt NY Banker's Suicide

'He's dead as far as I can throw him,' skeptic says of fraudster

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(Newser) – An international manhunt is now under way for a former hedge-fund manager who disappeared the day he was to begin serving a prison sentence for defrauding investors. A car belonging to Samuel Israel III was found Monday at a bridge over New York's Hudson River, the Wall Street Journal reports; though bodies of suicide jumpers are normally found quickly, there's no sign of Israel.

"No witnesses saw anybody jump from the bridge, and there's no evidence that he did," a police investigator said of Israel, 48, who was to begin serving a 20-year sentence for scamming investors out of $400 million. "He's dead as far as I can throw him," said one investor burned by the 2005 collapse of Bayou Management—a seemingly common sentiment.

Samuel Israel III, the former CEO of Bayou Group, arrives at Manhattan federal court for his sentencing, Monday, April 14, 2008, in New York.
Samuel Israel III, the former CEO of Bayou Group, arrives at Manhattan federal court for his sentencing, Monday, April 14, 2008, in New York.   (AP Photo/ Louis Lanzano)
In this Sept. 29, 2005 file photo, Samuel Israel III, the founder of Bayou hedge fund, leaves federal court in White Plains, N.Y. after pleading guilty to conspiracy and fraud charges for his role in a scandal that allegedly cost investors about $450 million.
In this Sept. 29, 2005 file photo, Samuel Israel III, the founder of Bayou hedge fund, leaves federal court in White Plains, N.Y. after pleading guilty to conspiracy and fraud charges for his role in...   (AP Photo/Adam Rountree, File)
Bayou Group hedge-fund founder Samuel Israel III, right, arrives at the U.S Courthouse in New York. An international manhunt has been launched to find Israel.
Bayou Group hedge-fund founder Samuel Israel III, right, arrives at the U.S Courthouse in New York. An international manhunt has been launched to find Israel.   (AP Photo/Craig Ruttle, File)
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