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

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of