Guilty Pleas for Bayou Brass

Updated from 3:03 p.m. EDT

The wealthy investors who got duped in the Bayou Management hedge fund scandal got a measure of justice when two top executives entered guilty pleas Thursday.

Daniel Marino, the former chief financial officer of Bayou, pleaded guilty to four felony counts before a federal judge in White Plains, N.Y., early in the morning. A few hours later, Samuel Israel III, Bayou's founder and manager, did the same.

Federal prosecutors have accused both men of defrauding investors out of $300 million while running their hedge fund that at one time claimed to have more than $400 million in assets. ...