Jun 12, 2008 11:59 pm US/Eastern
Faked His Own Death? Try 'WANTED' By Feds
Convicted Swindler Samuel Israel III Disappeared Near Bear Mountain Bridge Before He Was Due To Start Prison
U.S. Marshals Believed To Be Interrogating Getaway Driver
NEW YORK (CBS) ―
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The feds are in hot pursuit of Samuel Israel III, but he could be just about anywhere in the world right now, assuming he is actually alive.
CBS
A mystery man is being grilled by the feds in Westchester County about the disappearance of convicted swindler Samuel Israel III. CBS 2 HD has learned the man is possibly Israel's getaway driver, more evidence that he may have faked suicide to avoid prison time.
Investigators, certain enough that he's alive, gave CBS 2 HD Israel's "WANTED" poster. The poster describes Israel and suggests he's a possible "suicide faker." It says he's 5-foot-11, about 200 pounds, with a tattoo on his hip and maybe a gun in his pocket.
Israel should be considered armed and dangerous.
This has been a mystery deeper than the Hudson River. Authorities are wondering where Israel is. He had been convicted of swindling hundreds of people out of hundreds of millions of dollars.
There was new evidence Thursday night that Israel, the founder of Bayou Hedge Funds, is not dead in the water, but alive and on the run.
"If we don't find his body there are several questions that are going to need to be answered," New York State Police investigator Bruce Coccia told CBS 2 HD on Tuesday.
Police boats have continued to search the Hudson River even though there may be no body to find. Sources tell CBS 2 HD the message "Suicide is Painless," etched in to dust on the hood of Israel's abandoned SUV, is just a ruse.
Bear Mountain Bridge surveillance video shows a car rolling up alongside the SUV. On Thursday night, CBS 2 HD learned the U.S. Marshal's are grilling the second driver, trying to determine if he was part of a getaway plan.
None of this comes as a surprise to Ross Intelisano, who represents 20 of the victims who lost a combined $25 million.
"I think it's one of the most brazen hedge fund frauds ever, If not the most," Intelisano said.
The prosecution just released documents detailing Israel's mental and physical problems. The documents also explain why a decade was knocked off Israel's sentence -- from 30 to 20 years because he cooperated with the feds. Then he disappeared on the very day he was to report to prison.
"People think he was never intending to spend any time in jail," Intelisano said.
The feds say of the $450 million Israel stole, about $110 million of it has been found and will be returned to victims.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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