Stock swindler's guilty plea rejected twice

A second judge rejected a convicted Armonk hedge-fund swindler's guilty plea Wednesday in a White Plains courtroom. Samuel Israel III, 48, was scheduled to start a 20-year prison sentence on June 9 in

News 12 Staff

May 28, 2014, 6:55 PM

Updated 3,712 days ago

Share:

A second judge rejected a convicted Armonk hedge-fund swindler's guilty plea Wednesday in a White Plains courtroom.
Samuel Israel III, 48, was scheduled to start a 20-year prison sentence on June 9 in Massachusetts for fleecing investors. On the morning that he was supposed to surrender, authorities say Israel left his SUV on Bear Mountain Bridge with the words "suicide is painless" scrawled in dust on the hood.
He then took off in an RV and apparently spent the next few weeks at a Massachusetts campground while police and federal agents, not fooled by the fake suicide, searched for him. Israel surrendered July 2 at a Massachusetts police station.
While he was missing, his girlfriend, Debra Ryan, was arrested and charged with aiding and abetting his failure to surrender. Her case is pending.
Israel pleaded guilty Wednesday morning to a charge of failure to surrender. However, magistrate Judge Lisa Margaret Smith said she wasn't authorized to accept his guilty plea and that the case would go before Judge Kenneth Karas, who would likely accept the guilty plea.
At a separate hearing, Karas asked Israel if he was on drugs. Israel responded that he was in a detox program and was taking methadone. The judge then asked Israel to rank his mental clarity on a scale of one to 100.
"Mr. Israel indicated he was ready to proceed, but when Mr. Israel stated that his ability to proceed was at the 70 percent level, it was decided ? that it was better to put the matter off until another day," said Israel's attorney, Barry Bohrer.
Karas postponed the hearing until Sept. 16.
If Israel's guilty plea is accepted, he could get as much as 10 years tacked on his 20-year sentence for bilking investors out $450 million.


More from News 12
1:40
Lithium-ion battery fire blamed for closure of Newburgh tailor shop

Lithium-ion battery fire blamed for closure of Newburgh tailor shop

1:56
Sun skies and warm temps for Saturday in the Hudson Valley

Sun skies and warm temps for Saturday in the Hudson Valley

0:38
Multimillion-dollar transformation on the way for sections of Hudson Valley

Multimillion-dollar transformation on the way for sections of Hudson Valley

0:32
Veteran firefighter who suffered stroke receives warm welcome home

Veteran firefighter who suffered stroke receives warm welcome home

0:17
Yorktown police sergeant celebrates final walkout following 2 decades of service

Yorktown police sergeant celebrates final walkout following 2 decades of service

0:52
Slate Hill family of 5 loses home in afternoon blaze

Slate Hill family of 5 loses home in afternoon blaze

0:37
2 people charged in Middletown narcotics; firearms bust

2 people charged in Middletown narcotics; firearms bust

1:30
Motorcycle, van crash in Greenburgh causes serious injuries

Motorcycle, van crash in Greenburgh causes serious injuries

0:56
News 12 probes mystery cloud traced to Orange County & seen throughout tri-state area

News 12 probes mystery cloud traced to Orange County & seen throughout tri-state area

1:02
Hillcrest Fire Department receives 2,000 cans of drinking water, courtesy of Anheuser-Busch

Hillcrest Fire Department receives 2,000 cans of drinking water, courtesy of Anheuser-Busch

1:37
Storm Watch Team Meteorologist Skyler Harman strikes down lightning myths

Storm Watch Team Meteorologist Skyler Harman strikes down lightning myths

2:33
Can swimming become dangerous due to extremely high water surface temperatures?

Can swimming become dangerous due to extremely high water surface temperatures?

0:32
NYC officials: Westchester caseworker’s death ruled a homicide

NYC officials: Westchester caseworker’s death ruled a homicide

0:40
State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

0:34
Ex Frito-Lay employee files defamation lawsuit against PepsiCo claiming he invented ‘Flamin’ Hot Cheetos

Ex Frito-Lay employee files defamation lawsuit against PepsiCo claiming he invented ‘Flamin’ Hot Cheetos

0:40
Executive orders still in place preventing Rockland County and Orange County hotels from converting into migrant shelters

Executive orders still in place preventing Rockland County and Orange County hotels from converting into migrant shelters

0:54
Headlines: Drug ring prison sentence, Newburgh felony charge, uptick in car thefts in Briarcliff Manor

Headlines: Drug ring prison sentence, Newburgh felony charge, uptick in car thefts in Briarcliff Manor

0:20
Man sentence to 10 years in prison for running Orange County drug ring

Man sentence to 10 years in prison for running Orange County drug ring

1:18
Town of Wallkill propose noise ordinances at Orange County fairgrounds

Town of Wallkill propose noise ordinances at Orange County fairgrounds

0:34
Finger in salad lawsuit against Chop’t discontinued

Finger in salad lawsuit against Chop’t discontinued