Two former executives of the collapsed Bayou Management have been expelled from operating in the securities industry for an unspecified amount of time, according to Reuters.
Founder Samuel Israel and CFO Daniel Marino have been "barred from association with any broker, dealer or investment advisor," the SEC agreement outlined.
Israel and Marino raised $450 million illegally between 1996 and 2005, and then lost it through a bad trading strategy. They also lied and told investors that the fund was producing profits, to keep investors from divesting.
Last September, both men pleaded guilty to Federal conspiracy and fraud charges having to do with the collapse of the hedge fund.
