Legal News

Judge Refuses Israel?s Guilty Plea; Cites Doubt About Competence

By Dan Slater

It was over a month ago that Samuel Israel III — the hedge-fund-CEO-turned-felon-turned-fugitive who disappeared on the day he was to report to prison for a 20-year sentence — surrendered to police in Massachusetts. Yesterday, the 49 year-old Israel, former CEO of defunct hedge-fund Bayou, appeared before U.S. District Judge Kenneth Karas in White Plains and attempted to plead guilty to jumping bail, an offense that could net him another 10 years in prison. But Judge Karas wasn’t having it.

“The fact there is some doubt about [your competence] makes it imprudent to go forward today,” said Karas, after being told by Israel that he was using methadone to wean himself from fentanyl patches — a prescription painkiller. (In June, just before Israel was to report to prison, his SUV was found abandoned on a bridge in New York’s Westchester County with the words “suicide is painless” scrawled in the dust on the hood. [Insert ironic remark here.]) While he told the judge he understood the proceedings and wanted to continue, he said he considered himself only “60 to 70%.”

Here’s the WSJ report.

A new hearing date was set for Sept. 16.

Photo: AP

Full post as published by Law Blog - WSJ.com on August 07, 2008 (boomark / email).