Florida fund manager Arthur Nadel was indicted Tuesday on criminal charges for allegedly soliciting hundreds of millions of dollars in investor money under false pretenses and misappropriating client funds. Mr. Nadel, 76 years old, was charged in a 15-count indictment with mail fraud, securities fraud and wire fraud.
“It’s a much more complex story than the indictment may suggest,” said Mark Gombiner, Mr. Nadel’s lawyer. “We’re going to be evaluating what our defenses are.” Mr. Gombiner said his client will plead not guilty.
Previously, the SEC had filed a complaint against Mr. Nadel related to the same frauds perpetrated on his investors. “Nadel solicited prospective clients to invest in the funds by making various misrepresentations about the performance and value of the funds, including that the net asset value of each of the funds was tens of millions of dollars,” the U.S. Attorney’s Office in New York said in a statement. “Nadel also claimed to investors that his purchases and sales of securities in the Funds had generated cumulatively more than $271 million in gains. In truth, Nadel’s trading resulted in an overall net loss in the funds.”
Back in January, Nadel went on the run and spent two week in hiding. He had ditched his car in an airport parking lot. One of his investors had demanded an independent audit after the fallout form the Madoff scandal.
- SEC Complaint against Arthur Nadel and Scoop Capital – Hosted on JD Supra
- Indictment of Arthur G. Nadel for securities fraud– Hosted on JD Supra
- Arthur Nadel is Indicted From WSJ.com
- DOJ Press Release (.pdf)
- Arthur Nadel (Housemate of Bernie), Runs into Allen Stanford Conundrum from the WSJ Law Blog