UPDATE: Judge Sets Bail Terms Nadel Can’t Meet

Feb 25 2009 | 12:22pm ET

A federal judge today said accused hedge fund fraudster Arthur Nadel can be freed on $5 million bond. But Nadel, who is accused of defrauding investors of more than $300 million, is unlikely to post bail, his lawyer said.

U.S. District Judge Denise Cote included home detention in the bail terms at the hearing in Manhattan. She said there are tens of millions of dollars still missing from the six hedge funds managed by Nadel, who ran Sarasota, Fla.-based Scoop Management.

“I don’t think he has a million dollars,” Todd Foster, Nadel’s attorney, said after the hearing, according to Reuters. “We can come back and ask for an adjustment when the money issues are settled and the accounting is performed.”

Until then, Nadel will remain incarcerated in New York, where he faces securities and wire fraud charges. Nadel has also been sued by the Securities and Exchange Commission.

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