Wednesday, 30 July 2014
Last updated 2 hours ago
Feb 23 2010 | 7:24am ET
Four investors with alleged Ponzi schemer Arthur Nadel have settled lawsuits filed against them by the court-appointed receiver in the case.
The first settlements won by Burton Wiand have boosted the pool of money available to victims of the alleged scam, which prosecutors say cost investors $168 million, by more than $1 million. Wiand says Nadel paid out some $53 million in fictitious profits to investors in six hedge funds he managed.
Most of the settlement money comes a single investor, the Miami-based Argenta Fund, which agreed to return $941,152. Argenta invested $1.3 million in Nadel’s Viking Fund in 2004, withdrawing more than $2.4 million four years later. Nine months after that, Nadel’s funds collapsed.
Another fund, Westport, Conn.-based Sandcastle Partners, will return all $60,780 in allegedly bogus profits it withdrew. The Lester Haynes Blackburn Trust agreed to repay $27,712, and James Kapralos $37,677.
All four must pony up within two weeks. Argenta and the Blackburn Trust got to keep 10% of the allegedly phony profits because Wiand had not asked them to return the money prior to filing suit.
The receiver also announced that another four Nadel investors have agreed to return money they redeemed from his funds without the trouble of a lawsuit. Those agreements netted another $433,585 for Wiand’s trust.
Wiand has now recovered some $3.4 million from investors in Nadel’s funds.
Nadel himself has been jailed since his arrest more than one year ago. His trial is due to begin in April, although prosecutors indicated that they are working on a deal with the 77-year-old.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…