Bayou creditors sue Goldman Sachs for $20M

The ex-Stamford, Conn.-based hedge fund managed by Samuel Israel defrauded investors out of $300 million.
JUL 18, 2008
By  Bloomberg
Creditors of Bayou Management LLC, run by former fugitive from justice Samuel Israel III, have sued Goldman Sachs Group Inc. for $20 million, according to a report in The New York Times. The Stamford, Conn.-based hedge fund defrauded investors out of $300 million. New York-based Goldman was responsible for taking custody of securities and providing reports on Bayou’s investments. The suit was filed as a private arbitration case in federal court in May, weeks before Mr. Israel faked his own suicide and fled. He later turned himself into the authorities. It claims that Goldman provided monthly statements to Bayou outlining its losses — more than $88 million between August 1999 and August 2005 — but that Goldman knew that Bayou was reporting significant gains to investors. Calls to Goldman were not returned.

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.