Bayou co-founder sentenced to 20 yrs in prison

NEW YORK, April 14 (Reuters) - A U.S. judge sentenced the co-founder of the defunct hedge fund Bayou Group to 20 years in prison on Monday for his role in a scheme that cheated investors out of more than $400 million.

Samuel Israel III, 48, pleaded guilty in September 2005 to charges of conspiracy and fraud in connection with bilking Bayou investors out of millions.

The demise of Connecticut-based Bayou rocked the $1.8 trillion hedge fund industry and led to calls for more oversight. (Reporting by Martha Graybow and Leslie Gevirtz; editing by Jeffrey Benkoe)