Hedge fund scammer sent for medical evaluation

Posted: Updated:

A judge has ordered convicted hedge fund swindler Sam Israel, who allegedly faked his own suicide to avoid serving a 20-year prison sentence, to undergo a medical evaluation in North Carolina.

Israel, of Armonk, was back for a fourth time Tuesday in U.S. District Court where he was expected to admit to the alleged ruse. Instead, judge Kenneth Karas and attorneys for both sides agreed Israel was not fit to proceed with the hearing.

The convicted swindler was in a drug detox program during his previous three federal court appearances, so the court did not accept his guilty plea for failing to report to prison.

Israel is now finished with the drug treatment, but his attorneys say he's still not well. Judge Karas said he would permit a delay on the grounds of determining Israel's mental capacity.

The 49-year-old Israel will be sent to a federal prison complex in Butner, N.C., for medical and psychiatric evaluation.

Israel was supposed to report to prison June 9 for bilking investors out of hundreds of millions of dollars. Instead, authorities say, he faked his suicide - leaving his SUV at a Hudson River bridge with the words "suicide is painless" etched into the dust on the hood. He surrendered July 2.

The evaluation process is expected to last 90 days.

Related stories: Tax swindler back in court Stock swindler's guilty plea rejected twice Armonk stock swindler arraigned on new charges Neighbor says Armonk stock swindler not dead

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."