Nadel Sent To Va. Prison

Dec 29 2010 | 4:49am ET

After nearly two years in the federal detention centers of New York City, Ponzi schemer Arthur Nadel is headed south—and he can’t be happy about it.

The 77-year-old, who has complained of ill health ever since his arrest in early 2009 on charges that he bilked investors in his hedge funds of $162 million, had hoped to spend his 14-year prison sentence at a federal prison medical facility. The judge who sentenced him even specified that he should be sent to the facility in Butner, N.C., adjoining the medium-security prison that houses fellow fraudster Bernard Madoff.

The U.S. Bureau of Prisons had other ideas, shipping Nadel to a medium-security prison in Petersburg, Va. It is unclear how long Nadel will spend there—he was moved from Brooklyn, N.Y., only within the last week—but the bureau is apparently loathe to house inmates with more than 10 years left on their sentence in facilities without a security fence.

Nadel’s lawyer said at his October sentencing that his client is in need of heart surgery.

Nadel pleaded guilty to 14 counts of securities, wire and mail fraud in February. U.S. District Judge John Koeltl sentenced him to 168 months in prison, or one month for each million he defrauded investors of.

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