Judge May Free Nadel On Bail

Jun 17 2009 | 12:07pm ET

After four months in jail, accused hedge fund fraudster Arthur Nadel may soon be able to go home to Florida.

A federal judge in New York, where Nadel faces mail, securities and wire fraud charges, said he was inclined to reduce the indicted hedge fund manager’s bail from $5 million. U.S. District Judge John Koeltl noted that, since his arrest in January, Nadel has not been able to come up with $1 million in cash to secure his bond, and pointed out that just about all of his assets and those of his wife have been seized.

The judge said he would consider allowing Nadel to post bail secured by his Sarasota, Fla., home, since “no other assets have been identified to secure the bond.” He scheduled a hearing for June 25.

Prosecutors have fought efforts to cut Nadel’s bail, noting that the Scoop Management chief went missing for two weeks after his alleged Ponzi scheme collapsed earlier this year. But Nadel’s lawyers say he can’t properly prepare for trial while jailed.

Nadel is accused of defrauding investors in six hedge funds he managed of $168 million. According to prosecutors, he “earned” $65.5 million, after taxes, in fees during the scheme, but that only $16 million has been recovered.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.