 According to federal prosecutors, Bayou had lied about its operations since the beginning, by “overstated gains, understated losses, and reported gains where there were losses.” Court documents show that Bayou never made any money.In mid-2004, Bayou sent a letter to investors, claiming that its assets valued in excess of US$450 million.In 2004, Samuel Israel III and Daniel Marino, the CEO and CFO, respectively, stopped trading fully and spent all resources on covering losses.