Fraudster Nadel Dead At 80

Apr 17 2012 | 2:27pm ET

Arthur Nadel, the Ponzi schemer who defrauded his hedge fund clients of $162 million, has died.

The Federal Bureau of Prisons Web site lists Nadel, who had served about a year-and-a-half of the 14 year sentence he received in 2010, as deceased. Nadel was 80 years old.

It is unclear precisely when Nadel died, or what the cause of death was. His attorneys had warned that their client was an "old, frail human being who does not have very much longer to live" prior to his sentencing. Mark Gombiner, the fraudster's lawyer, at the time predicted that the 14-year term amounted to "a life sentence."

"Dying behind prison walls is a very hard way for anyone to leave this world," Gombiner told the Sarasota Herald-Tribune. "Arthur had a troubled life, but he took his punishment with dignity."

Nadel pleaded guilty in February 2010 to running a decade-long fraud, admitting that he made up his six hedge funds' net asset values and wildly overstated their performance. The Scoop Management founder had been incarcerated since his arrest in January 2009,  after two weeks on the run.

Nadel died at the federal prison facility in Butner, N.C. That prison houses fellow fraudster Bernard Madoff, who is serving a 150-year sentence and is also likely to die there.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    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…