Nadel-Owned Homebuilder Sold, Partner’s Home Sought

Jan 28 2010 | 11:22am ET

The liquidation of accused Ponzi schemer Arthur Nadel’s business empire is continuing apace with the sale of a home construction company owned by the Florida hedge fund manager. And the court-appointed receiver in the case also plans to go after a home owned by one of Nadel’s alleged co-conspirators.

Burton Wiand has sold what’s left of Home Front Homes, an Englewood, Fla., construction company in which Nadel was the majority owner. The receiver seized the company, which built energy-efficient, panelized homes, in August.

Nadel is alleged to have poured $2.1 million from the six hedge funds he controlled into Home Front, but investors won’t see nearly that return. South American Development Corp. has agreed to buy the company’s assets for just $250,000, and more than $100,000 of that will be turned over to M&I Bank, which has agreed to waive $3 million in Home Front’s debt.

Nadel’s alleged victims will get just $95,300 for their unknown, unwanted $2.1 million investment.

“Because Home Front Homes is no longer a going concern, its only value is in the assets it owns,” Wiand explained in a court filing.

Meanwhile, Wiand yesterday moved a federal court to hand over a Sarasota, Fla., condominium owned by Neil Moody, on whose behalf Nadel was managing three hedge funds. Moody and his son, Christopher, have agreed not to dispute the Securities and Exchange Commission’s securities fraud allegations against them, although they have neither admitted nor denied any wrongdoing in the Nadel case.

“In light of the large sums of scheme proceeds that flowed into the same account from which mortgage and other payments relating to the property were made and Neil Moody's uncontested fraudulent role in the scheme, the receiver is entitled to take possession, control, and ownership of the property for the benefit of defrauded investors,” Wiand wrote.

Moody bought the seventh-floor condo on the bay in downtown Sarasota in 2006. The property features a dock and a private elevator. Moody paid $2.16 million for the place; it is now on the market for $2.5 million, but has found no takers in almost a year.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.