Warrant issued for hedge-fund swindler

June 11, 2008 4:39:46 PM PDT
A New York judge has issued a bench warrant for the arrest of Samuel Israel III. Investigators are still trying to determine whether the hedge-fund swindler jumped into the Hudson River on the day he was supposed to start his 20-year prison term. Herb Hadad, spokesman for the U.S. attorney's office, announced the bench warrant Wednesday and said federal agents "have not foreclosed any possibilities."

Meanwhile, state police continued a search of the river beneath the Bear Mountain Bridge. Israel's SUV was abandoned in the area Monday with "Suicide is Painless" written into the dust on the hood. No body has been found.

Israel persuaded investors to pump $450 million into his Bayou hedge by hiding the losses that eventually forced its collapse.