Thursday, 25 December 2014
Last updated 1 day ago
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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.