Sam Israel, the Secret Market, and Wall Street's Wildest Con
Crown, Hardcover, 9780307716071, 368pp.
Publication Date: July 10, 2012
Octopus is a real-life thriller that tells the inside story of an audacious hedge fund fraud and the wild search, by a colorful cast of rogues and schemers, for a “secret market” beneath the financial market we all know.
Sam Israel was a man who seemed to have it all – until the hedge fund he ran, Bayou, imploded and he became the target of a nationwide manhunt. Born into one of America’s most illustrious trading families, Israel was determined to strike out on his own. So after apprenticing with one of the greatest hedge fund traders of the 1980’s, Sam founded his own fund and promised his investors guaranteed profits. With the proprietary computer program he’d created, he claimed to be able to predict the future.
But his future was already beginning to unravel.
After suffering devastating losses and fabricating fake returns, Israel knew it was only a matter of time before his real performance would be discovered, so when a former black-ops intelligence operative told him about a “secret market” run by the Fed, Israel bet his last $150 million on a chance to make billions. Thus began his year-long adventure in “the Upperworld” -- a society populated by clandestine bankers, shady European nobility, and spooks issuing cryptic warnings about a mysterious cabal known as the Octopus.
Whether the “secret market” was real or a con, Israel was all in – and as the pressures mounted and increasingly sinister violence crept into his life, he struggled to break free of the Octopus’ tentacles.
"By far the most rollicking, trippy book to emerge from the 2008 financial crisis."
“Lawson [has] found gold…This is a fantastic story, in both senses of the word, with a freshness that recalls Liars Poker.”
--Bryan Burrough, New York Times
“Read this book to understand Wall Street…Someone is going to Octopus into a movie. By this time next year, Lawson will have a fat deal…The reason for that is that Octopus is an incredible dark comedy with one of the craziest true-life ironic twists you can possibly imagine.
--Matt Taibbi, Rolling Stone
"Lively...turns a lens on the fast and loose ways of Wall Street...would make an excellent gift for a regulatory complicance officer...or a shrink."
“A cautionary tale of the highly sophisticated, often endemic fraud that still lurks on Wall Street…I was riveted by Mr. Lawson’s telling…the story is mind-boggling.”
--Andrew Sorkin, New York Times (Dealbook)
“Entertaining…a colorful contemporary story about greed and ambition warping judgment, about con men duping other con men…replete with secret markets, shady intelligence operatives, and even a space alien that overdosed on ice cream.”
“Full on Twilight Zone…features not just rampant fraud but guns, supposed CIA double agents, drugs, JFK’s assassination, and oh yes, world domination. Did I mention that this is a nonfiction book?...An outrageous but definitely movie-worthy tale. Lawson’s reporting is prodigious.”
“Like The Sting…An astounding story that forces you to remind yourself that this actually happened not ten years ago, to real people with real money.”
“[Features] a series of spy-thriller escapades that could have been plucked from a Jason Bourne movie…More fun and thrilling than any work of journalism about hedge funds has the right to be.”
“An inside look at a savage tribal society [of Wall Street traders] that also reminds one of that rollicking farce concocted by Mel Brooks, ‘The Producers’… Brings to life one of the most colorful, and often engaging, con men of this or any other century…an entertaining, well-told tale.”
“If you dig movies about cons, like Catch Me If You Can, The Sting, and The Spanish Prisoner, you will blow through Octopus, Guy Lawson’s deftly and enthusiastically told tale of Same Israel and the Bayou hedge fund.”
--The Daily Beast
“Penetratingly comprehensive…Lawson nimbly traverses the labyrinthine depths of a worldwide banking con that managed to involve looted Federal Reserve notes and the JFK assassination…An eye-opening window onto Wall Street’s destructive culture of unchecked hubris and a harrowing thrill ride into the unraveling mind of a desperate operator.”