Fugitive Swindler Surrenders in Southwick

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Fugitive Swindler Surrenders in Southwick

By Matt DeLucia

The U.S. Marshals have taken custody of a fugitive hedge fund swindler who faked his own death. Samuel Israel III, 48, turned himself in to Southwick Police Wednesday morning.

Police said Israel was hiding out at the Prospect Mountain Campground in Granville, Mass. since June 9 when he disappeared. Israel was supposed to report to the Devens federal prison in Ayer, Massachusetts on that day to begin a 20-year sentence for swindling investors out of $450 million in hedge funds.

Police said Israel faked his own suicide when they found his car parked on the Bear Mountain Bridge, high above the Hudson River in New York. The phrase "suicide is painless" was written in dust on his car. But the feds didn't buy it.
A camper who was staying next to Israel had no idea he was a fugitive. "He was on his motorcycle most of the time. We hardly saw him. He was on his bike and I think he came back once and we didn't see him after," said Jean Gilbert.

Chief Mark Krynicki of the Southwick Police Department said Israel showed up riding a scooter at around 9:15 a.m. while talking with his mother on a cell phone.

Israel was arraigned at the Federal Courthouse in Springfield before being transferred to the U.S. Marshals' Office in New York to face "failure to surrender" charges that will add time to his 20-year prison term.

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