Fugitive Hedge- Fund Swindler in Feds' Custody

After faking his own death, Samuel Israel turns himself in
By Newser Editors and Wire Services
Posted Jul 2, 2008 11:02 AM CDT
This wanted poster provided by the U.S. Department of Justice Marshals Service shows Samuel Israel III.   (AP Photo/ U.S. Department of Justice Marshals Service)
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(Newser) – It's official: Samuel Israel definitely isn't dead. The fugitive hedge-fund swindler turned himself in today, federal authorities say. Israel disappeared last month on the day he was supposed to report to federal prison. His car was found parked near a bridge over the Hudson River, with the words "suicide is painless" scrawled in the dust on the hood, leading to brief speculation that Israel had killed himself.

Authorities, however, soon ruled out the suicide theory and declared Israel a fugitive. Today a spokeswoman for US Attorney Michael Garcia said that Israel is in federal custody, but would provide no further details. Israel was sentenced to 20 years in prison for bilking investors out of $450 million in hedge funds.