Jul 2, 2008 7:10 pm US/Eastern
Hedge Fund Trader Who Faked Suicide Surrenders
Samuel Israel III Faked Death To Avoid Prison Sentence
SOUTHWICK, Mass. (CBS) ―
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Missing hedge fund swindler Samuel Israel III went on the run in a white recreational vehicle carrying a motor scooter, according to federal agents. (File)
CBS
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Debra Ryan, Samuel Israel's girlfriend, admitted to investigators that she helped Israel go into hiding June 9, the day he was supposed to report to federal prison for the start of a 20-year term.
CBS
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This is a picture of the RV federal agents believe missing hedge fund swindler Samuel Israel III escaped in.
CBS
The fugitive hedge fund swindler on the run for almost a month is now in custody. Samuel Israel III, 48, turned himself in Wednesday morning. Authorities say Israel was hiding in Massachusetts. He vanished the day he was supposed to report to prison.
Three weeks and two days after he disappeared, the U.S. Marshals have their man.
Israel was driven to Springfield, Mass., federal court, three hours after he surrendered to authorities in nearby Southwick.
"He has been staying at a campground in Granville since his disappearance," Southwick Police Chief Mike Krynicki said. "He has not made any statements to the Southwich Police Department."
Israel drove his scooter to Southwick after first trying to surrender to police in Granville, but that part-time department was closed.
Israel had been on the lam since June 9 when he faked his suicide on the Bear Mountain Bridge over the Hudson River.
The U.S. Marshals quickly learned that he'd recently purchased a $50,000 recreational vehicle, and charged Israel's girlfriend, Debra Ryan, with aiding his escape.
Israel apparently drove the RV to a campground in Granville, where he'd been trying to keep a low profile.
"He was never around. He was on his motorcycle most of the time. We hardly saw him," campground visitor Jean Gilbert said. "I think he came back once and then we didn't see him after that."
Israel ripped off hedge fund investors to the tune of $300 million.
"The clients are very happy to hear that he turned himself in," attorney Ross Intelisano said. "They were very confident in the government and they are ready for him to start serving his jail time."
Israel's victims got more good news Wednesday as $115 million was seized from the hedge fund will be restored to investors.
Israel is expected to be returned to New York, to face "failure to surrender" charges that will add time to his 20-year prison term.
The U.S, Marshals worked with Israel's mother to help arrange his surrender. Israel was talking on his cell phone with his mother when he gave himself up Wednesday morning.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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