[1] In 2005, Samuel Israel III and CFO Daniel Marino pleaded guilty to multiple charges including conspiracy and fraud.
Investors were allured by a prospectus stating there would be prudent hedge fund management leading to an anticipated value of US$7.1 billion in ten years.
In 2004, Samuel Israel III and Daniel Marino, the CEO and CFO, respectively, stopped trading fully and spent all resources on covering losses.
[citation needed] On 14 April 2008, Israel was sentenced to 20 years in prison and ordered to forfeit $300 million after pleading guilty to defrauding investors in his now-bankrupt firm.
[3] On 10 June 2008, it was reported by the press that Israel may have committed suicide after a car registered to him was found abandoned on the Bear Mountain Bridge that spans one of the deepest stretches of the Hudson River in New York.