Wednesday, 25 May 2016
Last updated 2 hours ago
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.