Nadel Victims Get First Payments

May 10 2012 | 10:32am ET

Less than a month after the death of the man who defrauded them of their money, Arthur Nadel's victims are finally set to get their first payouts.

U.S. District Judge Richard Lazzara has approved the first distribution of $26 million, more than three-quarters of the money they've recovered from the $162 million Ponzi scheme. The payouts amount to about 20% of the 340 approved claims in the case.

The first checks went out on Monday.

Receiver Burton Wiand is still pursuing further recoveries for victims.

"I am delighted to have reached the point in time when the victims of Mr. Nadel's crimes can begin to receive a return of some of the funds that they had lost."

Nadel died on April 16 at the North Carolina federal prison where he was serving a 14-year sentence. He pleaded guilty two years ago to running a decade-long fraud, admitting that he made up his six hedge funds' net asset values and wildly overstated their performance.

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