[5] In an attempt to recoup investing losses, Israel became embroiled in a series of highly speculative if not outright fraudulent schemes.

[7] Israel pled guilty and on April 14, 2008, was sentenced to 20 years in prison and ordered to forfeit $300 million to compensate victims.

His 2006 GMC Envoy was found abandoned on the Bear Mountain Bridge on June 10, 2008 with the phrase "Suicide is Painless" written in dust on the vehicle's hood.

The phrase is the title of the theme song for both the movie and TV series M*A*S*H. Police suspected Israel attempted to fake his own death in order to avoid prison.

[10] Israel's girlfriend, Debra Ryan, was arrested later that same month for aiding and abetting his escape, and was released on bail.

Judge Colleen McMahon agreed in her 2019 ruling that Israel's health was poor, but she also said early release would "make a mockery of the sentencing statute" if Israel were released early, furthermore objecting to lenient sentencing for "white-collar criminals who have privileged backgrounds".