Two former executives of the now defunct Stamford, Connecticut-based hedge fund Bayou Management have been barred from the securities industry for an indefinite period by the Securities and Exchange Commission (SEC).
The SEC ordered Bayou founder Samuel Israel, 46, and its chief financial officer Daniel Marino, 45, to be “barred from association with any broker, dealer or investment advisor” as part of an SEC agreement last week.
Prosecutors alleged Israel and Marino lost the $450 million they raised from investors, but claimed it created profits. The two men last September pleaded guilty to federal conspiracy and fraud charges in relation to the Bayou collapse. They are awaiting sentencing for the charges.