Tuesday, 1 December 2015
Last updated 1 hour ago
Nov 12 2010 | 2:15am ET
The ex-wife of one of Ponzi schemer Arthur Nadel’s partners has settled a lawsuit filed against her by the receiver in the Nadel case.
Sharon Carter, who divorced Neil Moody earlier this year, agreed to turn over property valued at more than $1.1 million, about a quarter of the $4 million sought by Burton Wiand. A federal judge approved the settlement on Monday.
Nadel ran three hedge funds on behalf of Neil Moody and his son, Christopher. The two have not been accused of any criminal wrongdoing, but they have been sued both by Wiand and the Securities and Exchange Commission, which alleges that they lied to investors about Nadel’s role in managing their funds.
Carter has agreed to hand over her Denver area home, worth about $600,000, as well as furniture, antiques, jewelry and other items worth $350,000. Carter will also pay $39,000 in cash and any tax refund claims stemming from her investments in the Nadel hedge funds, which could be worth more than $300,000.
While Carter owned the Colorado home before her 1998 marriage, the home has been substantially improved with the proceeds of the $400 million Ponzi scheme, according to Wiand. She will be allowed to remain in the home for an unspecified period of time, and her family will have the first opportunity to buy it when it is eventually sold.
Carter said she divorced her ex-husband because “I could no longer be married to man like Neil Moody when I learned of alleged accusations against him.”
She also said he was a victim, and not a beneficiary, of the Nadel fraud.
“Twelve years ago I had $1.9 million in securities and $300,000 in my IRA,” she wrote to U.S. District Judge Richard Lazzara. “I owned two [residences] in prime locations and both were paid in full. I belonged to two country clubs and bought a Jaguar with cash. Now, I am currently living in my home with a $400,000 mortgage which I cannot afford” on a monthly Social Security check of $1,824.
Last month, Nadel was sentenced to 14 years in prison for defrauding investors of $168 million. He pleaded guilty in February to 15 counts of securities, wire and mail fraud.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…