Fraudster Israel faked death, say marshals

When news broke last week that Samuel Israel III (pictured), the New York-based hedge fund manager and convicted fraudster, had chosen to end his life by throwing himself off a bridge into the Hudson River – he etched the words "suicide is painless" on the window of his car - many were sceptical. And they were right to be: the New York City marshals have now confirmed what many suspected all along - that Samuel's suicide was faked. They have issued a warrant for his arrest.

Samuel Israel III, as he likes to be styled, had good reason to vanish. He was due to begin a 20-year prison term for defrauding investors of $450m, a crime that came to light following the collapse of his £1bn Bayou Group hedge fund in 2005. The city marshals are not saying how they know that Israel is still alive, but their suspicions were all but confirmed when no body washed up on the Hudson's shores.

Investors recall that Israel, 48, pulled a similar stunt when Bayou collapsed. Along with his employees, he simply vanished from the company's offices and was not seen again until he was arrested. As Bayou investor Samuel Christen put it to the New York Times: "Everything about him was phoney."