The SEC obtained permanent injunctions against Samuel Israel III and Daniel E. Marino, principals of failed hedge fund manager Bayou Management from operating in the securities industry. As first reported Wednesday on Pensions & Investments' website, pionline.com; the SEC on Tuesday issued an order permanently barring Messrs. Israel and Marino from associating with any broker, dealer or investment adviser.
The SEC filed suit against the two men last year, alleging fraud in managing $450 million in hedge fund assets from 1996 through 2005. On April 19, Judge Colleen McMahon of the U.S. District Court in Manhattan issued permanent injunctions that restrain Messrs. Israel and Marino from committing violations of the antifraud provisions of federal securities laws.
Each defendant consented to the permanent injunctions, but neither admitted nor denied the allegations, according to the SEC statement.