Nadel Bail Bid Denied Again

Sep 28 2009 | 12:04pm ET

Arthur Nadel is still in jail after a federal judge told his public defender to come up with some better reasons to grant the accused hedge fund fraudster reduced bail terms.

U.S. District Court Judge John Koeltl did not outright reject lawyer Mark Gombiner’s bid for a $1 million bond secured by Nadel’s wife’s Sarasota, Fla., home, but made clear that Gombiner would have to do better than offering Nadel’s “ill-health” and assuring he “has no desire whatsoever to flee.” Gombiner also said that Nadel can’t assist in his own defense will locked up at the Metropolitan Detention Center.

Koeltl told Gombiner that he wasn’t convinced that Nadel, who has remained jailed in New York since February, is no longer a flight risk. In January, Nadel disappeared for two weeks as his hedge funds collapsed, eventually surrendering to authorities in Florida.

Nadel is accused of defrauding investors in six hedge funds he managed of $360 million. Prosecutors have opposed any reduction of his bail terms.

But Gombiner seemed encouraged that Koeltl was open to new arguments.

“We’re going to do the best we can to address his concerns,” he said.

Gombiner also offered a picture of what the life of a freed Nadel would look like. As in his previous failed bids for freedom, Nadel would accept both electronic monitoring and home confinement. But home apparently doesn’t mean a return to Florida for the 77-year-old, as he had previously sought.

Instead, Gombiner said Nadel would accept bail terms restricting him to New York City. The lawyer said he would find his client a $500-per-month room, paid for by Nadel’s Social Security benefits, which he would begin receiving if he were freed.

But prosecutors urged Koeltl to keep Nadel right were he is. Assistant U.S. Attorney Reed Brodsky again pointed to the fact that Nadel couldn’t meet the terms of his last bail reduction, which requires four co-signers of his bond. He originally found three, a number now pared to just two.

“That is incredibly significant, because what it tells us is that nobody trusts him,” Brodsky said.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.