Judge: Nadel-Advised Fund Must Return Its Maserati

Mar 5 2009 | 12:11pm ET

It won’t get investors allegedly defrauded by Arthur Nadel back any of their money, but a federal judge has ordered one of the hedge funds he ran to turn in the keys to its Maserati.

The move to end Viking’s lease of a 2008 Maserati GranTurismo came at the request of court-appointed receiver Burton Wiand. Wiand said the $114,640 sports car, which is guaranteed by Viking principal Christopher Moody, won’t get Viking investors an extra dime, since the firm has no equity in the car. Nadel managed Viking’s hedge funds under a subadvisory arrangement.

Terminating the lease also gets rid of a potential claim against the Nadel estate, Wiand said.

The car will be returned to Putnam Leasing Co. It is unclear how much Viking was paying for use of the car, nor the value of the lease. While it has agreed to take the car back, Putnam said it is not releasing Moody from his obligations as guarantor of the lease.

Nadel was arrested in January and charged with lying to investors about the value of the six hedge funds he ran. He is awaiting trial in New York on securities and wire fraud charges.

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