West Palm Beach, FL ( www.hedgeco.net ) – The ongoing investigation of the Bayou Hedge Fund Group is revealing details about the problems of the fund. Eric Wilder, assistant Director of the Department of Banking’s Securities Division, confirmed to Associated Press that the SEC is conducting an inquiry into the disappearance of investor’s assets being managed by the firm.

A letter dated July 27 was sent by Samuel Israel III, informing the fund’s investors that the Bayou Family of Funds would be returning investor assets and the fund would shut its doors upon completing such process. According to the Associated Press, Israel stated in the letter, “I am currently in the process of getting divorced”; he also said he wants to spend more time with his children, and he wants to watch them grow up. Israel also noted in the letter that, “The opportunity to share in this miracle is not one that I plan to miss.”

Investors in the fund alerted officials when they did not receive 90 percent of their money, which Israel promised to return back to them. The investigation further showed that an employee wrote a suicide note according to the Wall Street Journal. The note made reference to the financial troubles of the Connecticut based Bayou hedge fund and brokerage firm. A man called the Connecticut police to report a suicide note that he found in the firm’s building.

The police confirmed that a suicide note was discovered by someone who flew in for a meeting with the Bayou Hedge Fund. They also confirmed that the person who wrote the note had been working atthe office earlier. The individual who wrote the note was soon picked up from his home and sent to the hospital apparently before he could harm himself. The man is going through a psychiatricevaluation at the hospital.

Paul Oranika
Contributing Writer

HedgeCo.Net
Email: Editor@hedgeco.net

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