Nadel Fraud Pegged At $168 Million

Apr 6 2009 | 2:08am ET

Investors in Arthur Nadel’s hedge funds lost almost half of their money in the alleged scam, according to a court-appointed receiver.

A report from receiver Burton Wiand put the losses suffered in Nadel’s six hedge funds at about $168 million. Wiand said that has found about 371 investors who invested some $371 million with Nadel, who managed three hedge funds through his Sarasota, Fla.-based Scoop Management and three others as a subadviser.

Nadel was arrested in January and charged with securities and mail fraud. At the time, prosecutors said he had told investors his funds were managing more than $300 million when in fact there was less than $125,000 in the funds’ accounts.

Wiand’s report, submitted as part of the Securities and Exchange Commission’s civil suit against Nadel, says Nadel paid out some $53 million in “fictitious profits” as part of his Ponzi scheme.

Nadel has yet to respond to the charges against him, and last week won a 30-day continuance to find new lawyers after he was unable to pay his former attorneys. He remains in custody in New York.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 
Error

From the current issue of