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This is hardly a surprise. Samuel Israel and Daniel Marino have pleaded guilty to fraud charges in relation to the Bayous hedge fund. The fund has, or at least had, $300 million.

Israel, who rents a Tudor house with enclosed grounds in Westchester County, north of New York City, said in July that he would shut Bayou's four hedge funds, which he managed, and return investors' money in August. That didn't happen, triggering investigations by Connecticut banking regulators, the U.S. Securities and Exchange Commission and the Federal Bureau of Investigation. Marino wrote a six-page suicide note with details of the alleged fraud that was recovered by police at Bayou's office in Stamford, Connecticut, police said. Marino, who didn't take his life, grew up in Staten Island, New York, before relocating to Westport, Connecticut. He earned a Certified Public Accountant's license in 1990, according to New York records.

The confession in the suicide note may have made a defense by Marino and Israel difficult had they gone to trial.

Yes, that would hurt your defense a tad.

Posted by edelfenbein at September 29, 2005 3:35 PM