Law Firm Settles With Nadel Reciever

Mar 17 2014 | 3:39am ET

A Florida lawyer has seen his new law firm follow his old in settling with the receiver in the Arthur Nadel Ponzi scheme case.

Band Gates, co-founded by David Band, agreed to pay $167,208 to end Burton Wiand’s allegation that it fraudulently transferred funds from a client facing a $4 million bill from the Nadel receivership. In November, Band’s former firm, Band Weintraub, agreed to pay $1 million to Wiand, who had accused the firm of helping the client, Donald Rowe, hide money from the receiver.

Band’s partner, Chad Gates, said last week that there had been no fraudulent transfer.

“The money belonged to Mr. and Mrs. Rowe, and as their attorneys, we were obligated to disburse their money as they directed,” he told the Sarasota Herald-Tribune. “Unfortunately for Band Gates, the receiver for this matter is very aggressive and chose to pursue a cause of action against Band Gates to recover the Rowes’ assets, as the receiver knew that it was likely that our malpractice insurance would cover the claim.”

Wiand has worked to recover money for Nadel’s victims since the hedge fund fraudster was arrested in 2009. Nadel’s investors lost $168 million on the Ponzi scheme; he pleaded guilty to fraud in 2011 and died in prison the following year.


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