Bayou and the Bush Cousin

A first cousin of President Bush is emerging as a peripheral player in the increasingly bizarre Bayou Management hedge fund scandal.

Sources say John P. Ellis, a former journalist turned investment banker, represented several companies in investment presentations to IM Partners, a side venture set up by Samuel Israel and Daniel Marino. Israel and Marino were the management team that ran Bayou and who federal prosecutors allege defrauded investors out of $300 million.

People familiar with the Bayou saga say Ellis, a personal friend of Israel for the past several years, helped arranged at least five investment deals for IM Partners while working as a managing director for GH Venture Partners, a New York City-based investment bank. In all, IM Partners, a Connecticut-based investment partnership, invested at least $25 million in deals handled by GH Venture.

There's no indication that Ellis or GH Ventures were direct or indirect investors in either Bayou or IM Partners. And, other than their common principals, there's no direct evidence that any relationship existed between IM Partners and Bayou, although both operated out of the same Stamford, Conn., office.

A former columnist for the Boston Globe, Ellis may be best known for his work as an electoral consultant for Fox News during the 2000 presidential election. It was Ellis' analysis of the Florida vote total that led Fox to declare Bush the victor before any of the other networks.

Ellis is the son of Nancy Bush. He is the nephew of former President Bush and a cousin of President George W. Bush.

Ellis, who no longer works for GH Venture, declined to comment. Ralph Isham, president of GH Venture, who also is said by sources to have had a hand in the deals, could not be reached for comment.

But Isham's lawyer, Michael Considine, a partner with Day Berry & Howard, says his client voluntarily contacted the authorities after learning about the investigation.

"Upon learning that IM Partners was under investigation, Mr. Isham promptly brought to the government's attention his knowledge of investments made by IM partners,'' says Considine.