Armonk stock swindler in custody, authorities say

The United States Attorneys Office has confirmed that the man who helped steal $450 million from investors is now in custody. Samuel Israel III, a 48-year-old Armonk resident, was set to start a 20-year

News 12 Staff

Jul 2, 2008, 11:35 PM

Updated 5,868 days ago

Share:

The United States Attorneys Office has confirmed that the man who helped steal $450 million from investors is now in custody.
Samuel Israel III, a 48-year-old Armonk resident, was set to start a 20-year prison sentence three weeks ago in Massachusetts. On the day his sentence was scheduled to begin, authorities found Israel?s maroon SUV on the Bear Mountain Bridge with the words ?suicide is painless? written in dust on the hood.
Three days after discovering the car, authorities put out a wanted poster for Israel because they were convinced that he had faked his suicide. They even released the license plate number and a picture of the RV that they believe Israel used to make his escape. Finally, after being on the run for three weeks, Israel surrendered in Massachusetts on Wednesday.
Federal marshals say Israel was talking to his mother on his cell phone when he walked into the police station where he surrendered. It appears Israel?s mother played a role in her son?s surrender, authorities say.
Israel was sentenced in April to 20 years in federal prison for conspiracy and fraud. He was also ordered to pay $300 million to the investors he swindled through his Connecticut-based company.
Israel?s girlfriend, Debra Ryan, is also in trouble. Ryan is charged with aiding and abetting Israel during his escape. She could go to prison for 10 years if found guilty.
Locals have mixed feelings about the Israel situation. ?I think I would have faked my death too,? Ken Stone, an Armonk resident, says. ?20 years is a long time.?
Fellow Armonk resident Debbie Scheinkman disagrees. ?I feel sorry for someone who?s so desperate that he has to go to such lengths to escape the law and swindle people out of money,? she says.
Israel is currently in the custody of federal marshals, who will most likely take him directly to prison. It is unknown if charges against Israel will be upgraded. He and two others, however, were ordered to pay $300 million in restitution to the investors he swindled. So far, they have paid $115 million of that.
Neighbor says Armonk stock swindler not dead Missing stock swindler's girlfriend arrested


More from News 12
1:52
Hudson Valley doctors warn of listeria dangers following multi-state outbreak

Hudson Valley doctors warn of listeria dangers following multi-state outbreak

2:04
Sunny skies and warm temps for Saturday in the Hudson Valley

Sunny skies and warm temps for Saturday in the Hudson Valley

0:38
Multimillion-dollar transformation on the way for sections of Hudson Valley

Multimillion-dollar transformation on the way for sections of Hudson Valley

0:49
New basketball documentary film 'The Process' has ties to Westchester

New basketball documentary film 'The Process' has ties to Westchester

0:49
Olympic watch party in Pomona cheers on Rockland athletes

Olympic watch party in Pomona cheers on Rockland athletes

0:32
Veteran firefighter who suffered stroke receives warm welcome home

Veteran firefighter who suffered stroke receives warm welcome home

0:17
Yorktown police sergeant celebrates final walkout following 2 decades of service

Yorktown police sergeant celebrates final walkout following 2 decades of service

1:40
Lithium-ion battery fire blamed for closure of Newburgh tailor shop

Lithium-ion battery fire blamed for closure of Newburgh tailor shop

0:52
Slate Hill family of 5 loses home in afternoon blaze

Slate Hill family of 5 loses home in afternoon blaze

0:37
2 people charged in Middletown narcotics; firearms bust

2 people charged in Middletown narcotics; firearms bust

1:30
Motorcycle, van crash in Greenburgh causes serious injuries

Motorcycle, van crash in Greenburgh causes serious injuries

0:56
News 12 probes mystery cloud traced to Orange County & seen throughout tri-state area

News 12 probes mystery cloud traced to Orange County & seen throughout tri-state area

1:02
Hillcrest Fire Department receives 2,000 cans of drinking water, courtesy of Anheuser-Busch

Hillcrest Fire Department receives 2,000 cans of drinking water, courtesy of Anheuser-Busch

1:37
Storm Watch Team Meteorologist Skyler Harman strikes down lightning myths

Storm Watch Team Meteorologist Skyler Harman strikes down lightning myths

2:33
Can swimming become dangerous due to extremely high water surface temperatures?

Can swimming become dangerous due to extremely high water surface temperatures?

0:32
NYC officials: Westchester caseworker’s death ruled a homicide

NYC officials: Westchester caseworker’s death ruled a homicide

0:40
State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

0:34
Ex Frito-Lay employee files defamation lawsuit against PepsiCo claiming he invented ‘Flamin’ Hot Cheetos

Ex Frito-Lay employee files defamation lawsuit against PepsiCo claiming he invented ‘Flamin’ Hot Cheetos

0:40
Executive orders still in place preventing Rockland County and Orange County hotels from converting into migrant shelters

Executive orders still in place preventing Rockland County and Orange County hotels from converting into migrant shelters

0:34
Finger in salad lawsuit against Chop’t discontinued

Finger in salad lawsuit against Chop’t discontinued