Nadel Bail Hearing Delayed Until Thursday

Feb 17 2009 | 1:25am ET

Accused hedge fund fraudster Arthur Nadel could soon join his indicted brethren Bernard Madoff and Marc Dreier free on bail in New York City.

A federal judge in Manhattan delayed her decision on Nadel’s bail application by a week, ordering prosecutors and Nadel’s legal team to negotiate terms. The parties are due back in court on Thursday; Nadel will cool his heels in a Manhattan jail cell at least until then.

Nadel made his first appearance in a New York courtroom on Friday, after being transferred from his home state of Florida last week to face federal charges of securities and wire fraud. He is accused of defrauding investors in his six hedge funds of some $300 million.

Earlier this month, a federal judge in Tampa, Fla., denied Nadel’s bail, declaring him a flight risk. Prosecutors seem to agree, noting that the Scoop Management chief traveled across the country during the two weeks before he surrendered to authorities. Nadel disappeared on Jan. 14, leaving behind a suicide note and making stops in Louisiana, Texas, Georgia and California before his arrest by the Federal Bureau of Investigation in Tampa on Jan. 27.

But Nadel’s lawyers deny that their client was running from the law. Barry Cohen told Judge Denise Cote that “he was trying to figure out what he was going to do with his life” after his hedge funds began to unravel.

Another lawyer for the accused fraudster, Todd Foster, told the court that the losses suffered by his client’s clients in the alleged Ponzi scheme are “nowhere near $300 million, maybe a third of that,” and that Nadel is willing to cooperate with the Securities and Exchange Commission and the court-appointed receiver for his funds.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.