Wednesday, 28 September 2016
Last updated 7 hours ago
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.