Samuel Israel III and Daniel E. Marino - the CEO and CFO, respectively, of the defunct Bayou Group - pleaded guilty in the Federal District Court in White Plains, N.Y., to fraud charges on September 29.
Both men pleaded guilty to investment advisory fraud, mail fraud and conspiracy. Marino also pleaded guilty to wire fraud. "I knew the materials were false, and I knew what I was doing was wrong and fraudulent," Israel said in a statement to the judge. Sentencing is scheduled for January 9. At that time, Israel could be sentenced to as much as 30