Hedge Fund Swindler Gets More Prison Time for Trying to Avoid 20-Year Sentence

Hedge-fund swindler Samuel Israel III will spend an extra two years in prison for trying to skip out on serving his 20-year sentence for fraud.

Federal Judge Kenneth Karas in White Plains, N.Y., blasted Israel at sentencing Wednesday for "thumbing his nose at the system."

Israel apologized. The term begins after he serves his first 20 years.

Israel admitted in March that he faked his suicide and jumped bail last year.

He wanted to avoid doing time for taking hundreds of millions from investors in his Stamford, Conn.-based Bayou hedge funds. He eventually surrendered in Southwick, Mass.

The defense had sought 12 extra months. Federal guidelines called for 12 to 18 months. Karas indicated last week he wanted to make an example of Israel.