This story is truly worth to be made into a hollywood movie due to its over the top elements. Mr. Israel is serving a 22 year sentence at the moment. A book about him is coming out shortly titled, Octopus: Sam Israel, the Secret Market, and Wall Street’s Wildest Con” by Guy Lawson (Crown).
This story is fascinating as it tells how easy it is to fake extraordinary results and have fictitious accounting firms stamp those numbers. What is more mind-boggling about this story is that ” Israel said that only six months before the firm’s collapse the S.E.C. had looked at its trading and “they did not see anything wrong.”
BUTNER, N.C. — “I’m a proven liar. Don’t believe anything I say.”
That was what Samuel Israel III told me last week. He is the hedge fund manager convicted of running a $450 million Ponzi scheme who faked his own suicide in the summer of 2008 to avoid his prison sentence before turning himself in after a worldwide manhunt.
- A Con Man Who Lives Between Truth And Fiction (dealbook.nytimes.com)