( www.businessweek.com ) – WHITE PLAINS, N.Y. Sep 29, 2005  The founder and the chief financial officer of a beleaguered hedge fund each pleaded guilty to conspiracy and fraud charges Thursday for their roles in a scandal that allegedly cost investors millions of dollars.
Samuel Israel III, the founder, and Daniel Marino, the CFO of the Stamford, Conn.-based Bayou hedge fund, pleaded guilty in federal court.
Prosecutor Margery Feinzig said Bayou issued fictitious weekly, quarterly and annual reports that inflated its profits to attract new investors and lull existing investors into keeping their money in the
