Bayou Hedge Fund Group [SEP] inception
Bayou Hedge Fund Group
The Bayou Hedge Fund Group was a group of companies and hedge funds founded by Samuel Israel III in 1996. Approximately $450m was raised by the group from investors. Its investors were defrauded from the start with funds being misappropriated for personal use. After poor returns in 1998, the investors were lied to about the fund's returns and a fake accounting firm was set up to provide misleading audited results.
In 2005, Samuel Israel III and CFO Daniel Marino pleaded guilty to multiple charges including
in investments for clients. In December 2012, Hennessee Group LLC sold its hedge fund division to Terrapin Asset Management. However, the group maintained ownership of the Hennessee Hedge Fund Indexes as well as other research services. In 2007, Gradante predicted the looming CDS-CDO home mortgage crisis. The group’s research has been frequently quoted in the Wall Street Journal, Barron’s, The New York Times, Forbes, and The Financial Times.
Bayou Hedge Fund Fraud.
In July 2005, the Bayou hedge fund fraud