The founders of Bayou Management, the collapsed $450m (€374m) hedge fund firm, have pleaded guilty to criminal charges of conspiracy against them and could face up to 20 years in prison.
Samuel Israel, the firm's chief executive and Daniel Marino, chief financial officer, pleaded guilty to charges of conspiracy, investment-adviser fraud and mail fraud during a court hearing in White Plains, New York. Marino also pleaded guilty to a charge of wire fraud.
