Nadel Lawyers Settle

Aug 29 2012 | 12:41pm ET

Ponzi schemer Arthur Nadel's law firm has settled a lawsuit filed by the court-appointed receiver in the case.

Holland & Knight agreed to pay $25 million to settle Burton Wiand's allegations, without admitting or denying any wrongdoing. The law firm, which served as counsel to Nadel's funds and prepared investor memoranda for it, said it wanted to "resolve these matters amicably."

Wiand said the deal "represents a very significant benefit for the receivership estate and defrauded investors," who lost $162 million in the scam. Nadel died in April.

Holland & Knight earned only $500,000 for its work for Nadel's six hedge funds.

About $6.8 million of the $25 million settlement would go to the law firm pursuing the case. The deal still needs to be approved by a federal judge, and would bar other creditor claims against Holland & Knight—significant, since some Nadel victims had planned a class-action.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.