Wednesday, 1 October 2014
Last updated 6 hours ago
Jun 1 2009 | 9:37am ET
While the court-appointed receiver in the Bernard Madoff case has resorted to suing investors to recoup the Madoff Ponzi scheme’s phony profits, Burton Wiand, the receiver in the Arthur Nadel hedge fund fraud case, is finding a measure of success by simply asking.
Last week, Wiand announced that three more investors in Nadel’s hedge funds have agreed to return some $250,000 in money they withdrew from their accounts. All told, the receiver has won agreements totaling almost $735,000, money which will be pooled for return to victims of Nadel’s alleged fraud.
Nadel is accused of defrauding investors in his six hedge funds of about $168 million. According to prosecutors, he claimed the funds were worth more than $300 million when, in fact, their accounts held less than $125,000. Wiand has said Nadel paid out about $53 million in “fictitious profits” as part of a Ponzi scheme; he has asked 84 investors to return those “profits,” threatening legal action if they do not.
Those investors who agree to do so must pay 90% of the money they received.
Nadel remains jailed in New York, where he has been charged with 15 counts of securities, wire and mail fraud. In April, in a hand-written response to Securities and Exchange Commission civil charges against him, he denied running a Ponzi scheme.
The SEC complaint “sets forth no exact specific period of time during which the alleged wrongdoing affected all of the hedge funds, and is therefore vague, indefinite and misleading, rendering it impossible to admit or deny the allegations with any reasonable assurance,” Nadel wrote in the seven-page missive.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...