Wednesday, 25 May 2016
Last updated 59 min ago
Apr 29 2009 | 2:21am ET
Almost three months after his arrest, hedge fund manager Arthur Nadel has been indicted on fraud charges.
A federal grand jury in New York approved a 15-count indictment of Nadel, including charges of securities, mail and wire fraud. If convicted, the 76-year-old founder Sarasota, Fla.-based Scoop Management would likely spend the rest of his life in prison; each count of the indictment carries up to 20 years.
Nadel plans to plead not guilty during a court appearance on Thursday, his lawyer said.
According to prosecutors, over a 10-year span, Nadel ripped investors in six hedge funds he managed off to the tune of $360 million. The government alleges that Nadel created bogus account statements to convince clients that all was well, when he was, in fact, running a Ponzi scheme.
The court-appointed receiver in the Nadel case said earlier this month that clients had lost roughly half the money invested with Nadel, totaling about $168 million.
Nadel’s lawyer says he will again seek reduced bail terms for his client on Thursday. Nadel has been incarcerated in New York since shortly after he surrendered to authorities in his home state of Florida in January. Prosecutors are likely to oppose the bail bid, noting that Nadel went on the run for two weeks as his alleged scam collapsed before turning himself in.
Nadel also faces civil charges filed by the Securities and Exchange Commission.