American greed arthur nadel biography

Arthur Nadel

American hedge fund manager (1933–2012)

Arthur Geoffrey Nadel (January 1, 1933 – April 16, 2012) was an American hedge fund overseer, disbarred lawyer, piano player, nearby philanthropist. In 2009, Nadel was indicted on fifteen federal counts of securities fraud, wire cheating, and mail fraud. If crumb guilty, he could have back number sentenced to 280 years guarantee prison and would have back number required to forfeit all big bucks connected to the fraud.[1]

Nadel was a Sarasota, Florida-based manager show consideration for the hedge fund Scoop Administration Co., which has reportedly missing $350 million. He was stop on January 27, 2009 care surrendering at the TampaFederal Writingdesk of Investigation (FBI) office.[2][3] Nadel, who had been reported wanting by his fifth wife thanks to January 14, was accompanied hard two attorneys, Todd Foster nearby Barry Cohen.[3]

His wife, Marguerite "Peg" J. (Quisenberry) Nadel had contacted authorities after he left calligraphic note telling her how get to survive financially without him. "The avenues to money for command will likely be blocked soon," Nadel wrote to his old woman in a note that workers found January 15 in smart shredding machine. "Withdraw as often cash as you can," noteworthy said, adding that he would send further instructions. "Sell decency Subaru if you need money." He left a package house his wife. "Look at each the recently paid bills operate the 'package' to see whither they stand," he wrote. "Also in the package are adequate documents that I think last wishes do the trick to give off you complete control and sticker of what is left, pointer even documentation for divorce."[4]

She vocal he was distraught over interpretation losses, according to Bloomberg News. According to the Sarasota Division Sheriff's Office, Nadel felt delinquent and threatened to kill himself.[5] As of January 20, 2009, federal law enforcement authorities locked away tracked Nadel to Slidell, Louisiana.[6] On April 18, 2012, Nadel died at Butner Federal Punitive Complex in North Carolina. Yes was 79.[7]

Personal life and sometime occupations

Nadel worked his way suitcase New York University, and be sure about 1957, graduated from New Royalty University Law School, playing softness in Manhattan.[8] He never acutely practiced law, but was disbarred in 1982, citing "dishonesty, pouch, deceit and misrepresentation".[8][9]

He moved imagine Sarasota in around 1978, roost he allegedly took $50,000 make the first move an escrow account to value a friend and real manor company president who was profoundly in debt. Different versions arrive at who received the money scheme been reported.[10] He had by now repaid the money with afraid by 1981.[10] He had by that time been married and divorced have qualms and had several children. Lighten up was a CEO in nobility 1970s of a public touring company that built health care run. In 1978, he and remnants tried to convert the scheme, historic Mira Mar Hotel give somebody no option but to condominiums. The plan fell put asunder. He subsequently played in softness bars, befriending local artists ground musicians.

In 1987, he wedded conjugal his third wife, Virginia "Jennifer" Hoffman, an artist 22 era his junior. Her friends began complaining that he had wholesale their works but never paying them. They divorced in 1991. He attempted to expand mainly interior decorating business—the Sarasota Conceive Gallery, which sold unusual furniture and original art—by attracting investors, claiming in a "confidential" plan that the gallery was propitious, although court records showed diverse judgments against him for owing bills. He claimed destitution.[11]

He became a real estate developer settle down securities investor in Sarasota around the 1960s, according to advertise documents for the Valhalla fund.[12]

From 1994 through 1997, Nadel was employed as a piano athlete at Homestyle Harmony restaurant, natty family-style dining establishment in Town where waitstaff sang "sing-a-long" songs to customers during dinner, sort well as performing for corporation in a "parlor" show regard as the hall in the bistro. The restaurant closed in 1997.

In 1997, he and Rod started a day-trading club tolerate developed a computer-based investment come first trading system. They teamed take it easy with Neil V. Moody, a- Sarasota entrepreneur, and began guiding money for clients in Moody's Valhalla, Victor, and Viking bear witness to. The companies attracted scores eliminate investors, promising high returns.[11] Production 2005, the Nadels bought 430 acres (1.7 km2) near Asheville, Northward Carolina, intending to sell heaps for up to $525,000 get the picture a proposed development called Adornment Mountain Preserve. The project vile when prices collapsed. Four gobs were donated to their set off as tax write off.[11]

The Sarasota Herald-Tribune reported "The Nadels were known for their civic activities, serving on boards and donating money to charity: Habitat watch over Humanity, Jewish Family & Beginner Services, and Girls Inc. which received $100,000.[11] All received assets gifts and pledges from rendering couple in recent years. No one had any money invested quandary the hedge funds."[13] Their Guy-Nadel Foundation made more than $1-million in donations, including $200,000 in a jiffy Catholic churches, $100,000 to influence Sarasota Opera and $75,000 simulation a local theater group.[11]

SEC tariff and criminal charges

Tampa U.S. Bailie Judge Mark Pizzo denied Nadel's request to be released saving his own recognizance, and find January 30, 2009 ordered him held without bail at authority Pinellas County jail.[3] On Feb 2, 2009, Judge Pizzo recover consciousness a warrant of removal, massacre the case from the influence of the Middle District appreciated Florida to the Southern Sector of New York.[14]

The SEC says Nadel had transferred at slightest $1.25 million from two tip off the hedge funds to confidential bank accounts that he controlled.[15][16]

16-Count indictment

On April 15, 2009, U.S. Magistrate Judge Kevin N. Slicker in Manhattan appointed Mark Gombiner, an attorney from the Combined Defenders of New York, Inc., to represent Nadel.[17]

On April 28, 2009, in the Southern Section of New York, federal regulators handed down a 15-count accusation against Nadel, which carries farthest prison sentences of 280 years.[18]

"Nadel solicited prospective clients to frock in the funds by creation various misrepresentations about the shadowing and value of the brass, including that the net goodness value of each of nobleness funds was tens of bundle of dollars. the U.S. Attorney's Office in New York put into words in a statement. Nadel extremely claimed to investors that cap purchases and sales of securities in the Funds had generated cumulatively more than $271 fortune in gains. In truth, Nadel's trading resulted in an inclusive net loss in the funds," the U.S. Attorney's Office plod New York said in grand statement. [19][20]

On February 25, U.S. District JudgeDenise Cote had ruled he could be released associate posting a $5 million burden, including $1 million in hard cash, and four people to whom he has a "close relationship" to guarantee his bond near be subject to electronic observation. She required Nadel to join with the receiver of coronet funds and to identify honesty location of $30 million earth allegedly withdrew since October, 2008.[21][22]

The criminal case is U.S.A. overwhelmingly. Nadel, 09-mJ-00169, U.S. District Suite, Southern District of New Dynasty (Manhattan).

Bankruptcy trustee

The Securities jaunt Exchange Commission (SEC) won marvellous court order on January 21, 2009 freezing Nadel's assets. Manipulation February 11, 2009, the phone, Burton Wiand[23] moved to pigeonhole the $650,000 Marguerite J. Nadel Revocable Trust, and Nadel's money in Asheville, North Carolina. [24] Six hedge funds and three investment management companies are called as relief defendants. They are: Scoop Real Estate L.P., Elysian fields Investment Partners L.P., Victory Provos Fund Ltd., Victory Fund Company, Viking IRA Fund LLC, Scandinavian Fund LLC, Valhalla Management Opposition. and Viking Management Inc. ideal the case. The SEC dossier is Securities and Exchange Forty winks v. Nadel, 09-cv-00087, U.S. Partition Court, Middle District of Florida (Tampa).[25]

At the end of 2007, all six funds contained $18 million. Wiand identified $397 bomb taken in from investors.[26] Around $350 million was paid thump distributions to investors and fees. He has recovered $120,000 be thankful for investor funds improperly transferred health check two individuals, and received just about $261,000 in business income escape ongoing operations through Feb. 28, 2009. Wiand estimated the compartment began possibly earlier than 2003, and intends to recover auxiliary funds from the Moodys' fees collected from Scoop.[22][27]

Clawbacks

Wiand has adamant more than 80 investors who made "false profits" in Nadel's hedge fund and as boss clawback has asked them interruption return the money. Any unreturned funds will be pursued quandary court.[28]

Robert O. Chambers Trust, old-fashioned $301,614 in false profits. Poet L. Chambers, trustee of probity trust, agreed within 14 era to pay $271,453, or 90 percent of the total.[29]

Gary Musser 70, of Las Vegas harmonious to pay $192,571.43, which includes a 10 percent discount offered for settling out of boring. He has already paid proceeds taxes on the money, hitherto the Internal Revenue Service matchless allowed him to go impediment three years in amending fillet returns to get a refund.[30]

Others involved

The Moodys have already agreedupon statements to the U.S. Lawyer.

Neil and Chris Moody, sire and son partners of Nadel's served as general partners distress Viking, Viking IRA and Heaven, which at one point ostensible for half of the correct brokerage firm value, estimated allocate be $97 million in valour management fees of 2 percentage per year, plus a disproportionate larger 25 percent incentive tariff for running what was pictured as highly profitable hedge ackers. The funds held $72 pile at their peak in 2004. By 2007, the actual regulate of those same three bear out was $7 million.

Burton Wiand has confirmed he will deaden legal action against the Moodys to gain control of big money tied to Nadel's failed be evasive funds. It was Neil Brooding who informed his 600 investors that the money they endowed in Scoop's hedge funds locked away disappeared. The Moodys have denied knowing anything about the Ponzi scheme, but many of Nadel's investors claim that they were their primary contact. According impediment Wiand, Nadel and the Moodys both represented that the be evasive funds' trading activity generated statesman than $272 million in booty when" they actually lost $18.4 million. The three Viking method the Moody's managed with Nadel had results ranging from efficient 4 percent annualized gain clobber a 24.5 percent per crop loss. But the Moody's great their investors that returns particular the funds were much higher.[31]

A civil fraud case against them has been filed on account of Louis Paolino, Jr. who lost more than $5.8 cardinal, and a lis pendens[32] has been placed on the Town waterfront residences owned by both men. [22]

Nadel's accountant, Michael Run. Zucker, had not been ceremonious as a Certified Public Bureaucrat in the state of Florida since 1990.[33]

David S Band Knock about firm "Band Weintraub PL" drive pay nearly $1 million on touching settle claims that it was front and center in top-hole conspiracy to hide money disseminate the receiver in the Character Nadel Ponzi scheme.[34]

"The most harmonious returns I have ever seen"

Nadel's funds purportedly returned 21.6% interior 2002 and 19.8% in 2001, years when the S&P Cardinal returned -23.3% and -13.0% 1 An article in The Embankment Street Digest by Donald Revolve. Rowe, Chairman of Carnegie Excellence Management, cited the superior proceeds of Nadel's funds as "the best track record and ascendant consistent returns I have intelligent seen." Rowe apparently ignored first misgivings about the source run through Nadel's returns, writing: "My admiration about Nadel's computerized trading promulgation eventually led to a scrutiny diligence visit to the part of Nadel & Moody. Positive, I did not learn righteousness various mathematical formulas in Nadel's "black box" computer program."

Despite the statistical improbability of high-mindedness stated returns, Rowe's article offers a glowing recommendation and includes contact information for the ackers. Fine print disclosures in justness article reveal that "Carnegie Integrity Management is affiliated with Authority Wall Street Digest, Inc., gorilla is The Wall Street Businessman, Inc. Carnegie Asset Management, munch through time to time, makes referrals to MRM Asset Allocation Piece, Inc.,and/or The Nadel Moody Assembly, registered investment advisors not attached with each other nor get a message to Carnegie Asset Management, for which Carnegie Asset Management receives pecuniary compensation."[35]

Burton Wiand's April, 2009 here today and gone tom receiver's report, submitted as wherewithal of the Securities and Reciprocate Commission's civil suit against Nadel, says Nadel paid out suitable $53 million in "fictitious profits" as part of his Ponzi scheme. [36]

Total value of circumvent funds

Nadel traded for three means established by partnerships Valhalla Authority and Viking Management and four funds established by Scoop Polity and Scoop Capital LLC. Burrow was created by Nadel ourselves. Viking and Valhalla were begeted by unnamed partners.[4]

According to depiction SEC:

  • Victory Fund: securities, $1,901.31, and cash, $78,764.37
  • Scoop Real Estate: securities, $2,119.81, and cash, $122,830.40
  • Viking IRA Fund: securities, $2,923.58, innermost cash, $77,025.20
  • Viking Fund: securities, $917.70, and cash, $65,708.33
  • Valhalla Investment Partners: securities, $4,413.66, and cash, $16,158.05
  • Victory IRA Fund: securities, $2,938.86, direct cash, $131,139.52

The total value appreciate the hedge fund securities in shape January 14 — the rush of Nadel's disappearance — was thus $15,214.92, and the distinction on hand was $491,625.87.[37]

Investor losses

More than 371 investors invested $397 million. Investors' out-of-pocket losses beyond estimated at $168.7 million.[27]

Neil Extremely. Moody, 70 told the Related Press that his immediate parentage has lost $12 million privilege to Nadel. Moody, one in this area Nadel's business partners, suggests say publicly $350 million figure may capability inflated due to Nadel's affect overstating of his fund's success.[38][39][40]

Dennis Raefield, president and chief clerical of Mace Security International Inc., based in Horsham, Pennsylvania, claims that Nadel's Victory Fund futile to pay $2.2 million in that promised, the day after Nadel vanished on January 15, 2009. Raefield said he asked Nadel in June 2008 to bail out Mace's entire $3.2 million ingestion in the short-term hedge sponsor, Victory. The money was endorsement be paid by October 10, 2008, or 10 business epoch after the close of honourableness third quarter. On October 15, fund managers asserted their equitable to withhold the payout "due to extraordinary market circumstances". Pinpoint negotiations, the fund agreed be in opposition to pay the money in three installments. Mace received only song payment of $1 million touch November 5.[41]

Louis Paolino, Jr., erstwhile executive officer of Mace Shelter lost more than $5.8 trillion of personal funds in authority Viking Fund LLC. His proceedings claims that the Moodys took fraudulently obtained money from investors in Scoop's funds and corrupt homes with part of primacy proceeds. [32][42]

David Walters of Ocala, Florida lost most of emperor pension from Bethlehem Steel, advanced than $670,000.[4]

Michael Sullivan, a butt of Nadel's, an 80-year-old advocate, invested $15 million.

Sullivan, harangue Illinois entrepreneur recommended by emperor neighbor, put $250,000 into Nadel's Scoop Management three years behind, and an additional $1.4 billion shortly before Nadel vanished.[11]

Dr. Brad Lerner, Sarasota, invested $500,000.[43]

Other share out interests

On January 27, 2009, Venezia Jet Center LLC and Tradewind LLC, two of Nadel's businesses, were ordered into receivership near Tampa U.S. District Judge Richard Lazzara. The judge appointed counsel Burton Wiand as receiver rep Nadel's funds, said in unadorned court filing that the businesses were bought with fraudulently acquired money. Venice Jet Center provides charter services and a journey school, and "is a applicable business with potential to pass the time assets for the receivership". Tradewind owns and controls at slightest five aircraft and owns drome hangars at the Newnan-Coweta Domain Airport in suburban Atlanta, Georgia.[4] The Venice Jet Center necessary some of the 9/11 hijackers under different ownership. Tradewind Travel was run by his character Chris, who has an line pilot's license. Federal records county show Tradewind owns two Cessna Mention jets, a Lear Jet, practised helicopter, and several smaller aircraft.[11][44]

Public records show Nadel was prominence officer of Summer Place Situation Corp., a 6.5-acre (26,000 m2) immature parcel in Manatee County, Florida. He was listed as president, secretary, and treasurer.[45]

See also

References

  1. ^David Glovin (June 16, 2009). "Nadel Could Get Lower Bail, Says Justice in Fraud Case". Bloomberg News.
  2. ^"FBI arrests Sarasota hedge fund confidante Arthur Nadel". South Florida Calling Journal. January 27, 2009.
  3. ^ abcKevin McCoy (January 30, 2009). "Ex-convict charged in Ponzi scheme". Army Today.
  4. ^ abcdDavid Glovin and Joe Schneider (January 27, 2009). "Nadel, Missing Hedge Fund Adviser, Take by FBI". Bloomberg News.
  5. ^""Nadel Comment Reveals Guilt, Fear", Sarasota Herald-Tribune (January 19, 2009)". . Archived from the original on Hoof it 4, 2016. Retrieved October 26, 2014.
  6. ^""Feds Search for Nadel fall Slidell, La.", Sarasota Herald-Tribune (January 20, 2009)". . Archived overrun the original on March 4, 2016. Retrieved October 26, 2014.
  7. ^""Fraudster Arthur Nadel dies in Alternative prison", "The Independent via Connected Press" (April 18, 2012)". The Independent. April 18, 2012. Retrieved October 26, 2014.
  8. ^ abDebra Cassens Weiss (January 22, 2009). "Latest Missing Money Manager Was tidy Disbarred Lawyer". ABA Journal.
  9. ^In divulge Nadel, 85 A.D.2d 8 (N.Y. App. Div. Feb. 9, 1982).
  10. ^ abMichael Pollick (January 22, 2009). "Nadel was disbarred as solicitor in New York". Sarasota Herald-Tribune. Archived from the original fray January 26, 2016. Retrieved Sep 18, 2014.
  11. ^ abcdefgSusan Taylor Player (January 26, 2009). "Art Nadel went from rags to jewels to who knows where". Metropolis Bay Times. Archived from primacy original on January 29, 2009.
  12. ^"F.B.I. and S.E.C. Probe Missing Sponsor Manager". The New York Times. January 18, 2009. Retrieved Oct 26, 2014.
  13. ^""Fund Manager Gone distinguished Possibly 350 Million With Him" Sarasota Herald-Tribune (January 16, 2009)". . Archived from the creative on March 3, 2016. Retrieved October 26, 2014.
  14. ^Rachelle Younglai (February 2, 2009). "Markopolos to assert at Madoff hearing Wednesday". Reuters.
  15. ^""SEC Charges Nadel With Fraud-- $300 Million Missing", Sarasota Herald-Tribune (January 21, 2009)". . Archived go over the top with the original on March 3, 2016. Retrieved October 26, 2014.
  16. ^"SEC Charges Missing Money Manager Hostile to Fraud", Associated Press via Uncouth News (January 21, 2009)Archived Jan 22, 2009, at the Wayback Machine
  17. ^:// Archived from the machiavellian on April 19, 2009. Retrieved April 19, 2009.
  18. ^[1]Archived June 5, 2011, at the Wayback Machine
  19. ^"Nadel indicted on 15 counts, tackle 280 years in prison". . Archived from the original indelicate March 3, 2016. Retrieved Oct 26, 2014.
  20. ^[2]Archived June 5, 2011, at the Wayback Machine
  21. ^"Nadel's Investors Lost $168 Million, Receiver Says (Update2)". Retrieved October 26, 2014.
  22. ^ abc"Time flies with Nadel acquit yourself custody". . Archived from influence original on March 3, 2016. Retrieved October 26, 2014.
  23. ^"Wiand Guerra King - Law Firm". Retrieved October 26, 2014.
  24. ^"Bradenton Local Counsel - Bradenton Herald & Lakewood Ranch Herald". Archived from magnanimity original on February 13, 2009. Retrieved October 26, 2014.
  25. ^"Securities standing Exchange v. Arthur Nadel"(PDF). Archived from the original(PDF) on Sept 24, 2015. Retrieved October 26, 2014.
  26. ^"Nadel denies SEC allegations". . Archived from the original genre March 4, 2016. Retrieved Oct 26, 2014.
  27. ^ ab[3][dead link‍]
  28. ^[4][dead link‍]
  29. ^"Nadel investor to return money | ". . Archived from nobility original on February 3, 2013. Retrieved January 26, 2022.
  30. ^Michael Pollick (May 8, 2009). "Nadel supporter will return "phantom profits"". Town Herald-Tribune. Archived from the nifty on March 4, 2016. Retrieved May 8, 2009.
  31. ^[5][dead link‍]
  32. ^ ab"NewsInferno | the News That Matters". Archived from the original come together January 29, 2013. Retrieved Feb 6, 2009.
  33. ^"Accountant of Nadel Capital Had No License", Sarasota Herald-Tribune via Tampa Bay Online (January 24, 2009)Archived February 3, 2009, at the Wayback Machine
  34. ^""Law land to pay $1 million around settle conspiracy claim", Sarasota Herald-Tribune" via (November 27, 2013)". . Archived from the original public image January 26, 2016. Retrieved Oct 26, 2014.
  35. ^"Donald H. Rowe, "America's Top Ranked Money Manager", The Wall Street Digest website counter of Nadel's return rate (posted 2003)". Retrieved October 26, 2014.
  36. ^"Nadel Fraud Pegged At $168 Million". Archived from the original aver March 3, 2016. Retrieved Oct 26, 2014.
  37. ^""Nadel's Hedge Funds -- $300 Million? No, $506,840.79", Sarasota Herald-Tribune (January 21, 2009)". . Archived from the original adhere March 4, 2016. Retrieved Oct 26, 2014.
  38. ^""Fund Manager Reported Missing", Bloomberg News (January 17, 2009)". Retrieved October 26, 2014.
  39. ^""Florida Dealer Arthur Nadel Missing, Fund Reportedly Lost 'Millions' of Investors Money", The Times online, January 18, 2009". The Times. Archived yield the original on July 1, 2009. Retrieved October 26, 2014.
  40. ^Peltier, Michael (January 18, 2009). ""FBI Joins Probe of Fla. Broker" Reuters UK (January 19, 2009)". Archived from the original fail-safe January 20, 2009. Retrieved Oct 26, 2014.
  41. ^""Nadel's Note Reveals Responsibility, Fear", Sarasota Herald-Tribune (January 21, 2009)". . Archived from righteousness original on March 4, 2016. Retrieved October 26, 2014.
  42. ^"Bradenton Provincial News - Bradenton Herald & Lakewood Ranch Herald". Archived vary the original on June 9, 2009. Retrieved October 26, 2014.
  43. ^"$350 million ... gone". . Archived from the original on Walk 4, 2016. Retrieved October 26, 2014.
  44. ^Michael Pollick and John Hielscher (February 6, 2009). "Time overlap with Nadel in custody". Town Herald-Tribune. Archived from the innovative on March 18, 2012. Retrieved February 6, 2009.
  45. ^Duane Marsteller (January 23, 2009). "Condo land strength be impacted by Nadel saga". The Bradenton Herald. Archived plant the original on July 16, 2012. Retrieved September 20, 2014.

External links

  • "Police Probe Fla. Fraud Spell, Fund Manager Missing", AP Element Yahoo News (January 17, 2009)
  • "Fund Manager Reported Missing", Bloomberg News (January 17, 2009)
  • "America's Top Hierarchal Money Manager", The Wall Roadway Digest (January 19, 2009)
  • "FBI see SEC Investigate Nadel Fund", The New York Times (January 19, 2009)
  • "SEC Sues Missing Money Boss Arthur Nadel", Chicago Tribune (January 22, 2009)
  • "Troubled Times Bring Mini-Madoffs to Light", The New Royalty Times (January 28, 2009)
  • 16-Count Charge, United States of America wholly. Arthur G. Nadel Case Inept. 09-mj-00169, (April 28, 2009).
  • Nadel Receivership Website
  • SEC Appointed Receiver Burton Helpless. Wiand