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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...