MANHATTAN (CN) – Samuel Israel III, CEO of the Bayou hedge funds, was sentenced on Monday to more than 20 years in prison and ordered to pay more than $300 million in restitution to investors he defrauded in the decade-long shams that collapsed in 2005.
Israel pleaded guilty in September 2005 to conspiracy and fraud. He repeatedly lied to investors for a decade, while he and CFO Daniel Marino and Bayou director James Marquez profited from their frauds.
Marino was sentenced to 20 years in prison in January for conspiracy and fraud, and ordered to pay more than $100 million in restitution.
Marquez was sentenced in January to 4 years in prison and ordered to pay $6.3 million in restitution.