Introduction

Samuel israel the third founded a hedge fund called the bayou group with business partner james markez in 19 96. The byou fund under performed in its first few years of existence, losing value significantly. On the last trading day of december 19 98, there was a frantic meeting at bayu group between co founder sam israel thethird and james markes. They decided to send phony statements showing modest gains from the fund instead of the act losses incurred.