Arthur Nadel

src: i.ytimg.com

Arthur Geoffrey Nadel (January 1, 1933 - April 16, 2012) is a hedge fund manager, fired lawyer, piano player, and philanthropist. He was charged over 15 counts including six counts of securities fraud, eight counts of wire fraud and one count of mail fraud in federal court in Manhattan. If found guilty, Nadel could be sentenced to 280 years in prison and will be required to forfeit all fraudulent assets.

Nadel is a hedge fund manager based in Sarasota, Florida, Scoop Management Co., which has reportedly lost $ 350 million. He was arrested on January 27, 2009 after surrendering at the office of the Federal Federal Bureau of Investigation (FBI). Nadel, reportedly missing by his fifth wife since January 14, accompanied by two lawyers, Todd Foster and Barry Cohen.

His wife, Marguerite "Peg" J. (Quisenberry) Nadel has contacted the authorities after he left a note telling him how to survive financially without him. "The road to money for you is likely to be immediately blocked," Nadel wrote to his wife in a note that employees found January 15th in a paper shredder. "Drag as much cash as you can," he said, adding that he would send further instructions. "Sell Subaru if you need money." He left the package for his wife. "Look at all the bills that were recently paid in the 'package' to see where they stand," he wrote. "Also in the package is enough documents that I think will do the trick to give you full control and ownership of what's left, and even documentation for divorce."

He said he was desperate for the loss, according to Bloomberg News. According to the Sarasota County Sheriff's Office, Nadel feels guilty and threatens to commit suicide. On January 20, 2009, federal law enforcement authorities have tracked Nadel to Slidell, Louisiana. Nadel's case has been compared to the alleged fraud of Bernard Madoff and Marcus Schrenker recently.

On April 18, 2012, Arthur Nadel died at the Federal Destruction Complex in North Carolina. He is 80 years old.

Video Arthur Nadel

Personal life and previous work

Nadel worked through New York University, and in 1957, graduated from New York University Law School, playing piano in Manhattan. He never actively practiced law, but was fired in 1982, under the pretext of "dishonesty, deceit, fraud and misinterpretation".

He moved to Sarasota around 1978, and he allegedly took $ 50,000 from an escrow account to help a friend and president of a very indebted real estate company. Different versions of who received the money have been reported. He already paid off money with interest in 1981. He is married and divorced twice and has several children. He was a CEO in the 1970s from a public company building a health care facility. In 1978, he and the others tried to turn the shabby and historic Mira Mar Hotel into a condominium. The plan is a mess. He then played at the piano bar, making friends with local artists and musicians.

In 1987, he married his third wife, Virginia "Jennifer" Hoffman, an artist 22 years younger than him. His friends began to complain that he had sold their work but never paid for it. They divorced in 1991. He seeks to expand the interior decoration business - the Sarasota Design Gallery, which sells unusual original furniture and art - by attracting investors, claims in the "secret" prospectus that the gallery is profitable, although the court records show some judgments against he was due to unpaid bills. He claims poverty.

He became a real estate developer and securities investor in Sarasota during the 1960s, according to marketing documents for Valhalla funds.

From 1994 to 1997, Nadel was hired as a piano player at the Homestyle Harmony restaurant, a family-style dining place in Sarasota where waiters sang "long-singing" songs to diners, and performed for guests in the "living room" in the restaurant. The restaurant closed in 1997.

In 1997, he and Peg started a daily trading club and developed a computer-based investment and trading system. They work with Neil V. Moody, a Sarasota entrepreneur, and start managing money for clients in Moody's Valhalla, Victor, and Viking funds. Firms attract some investors, promising high returns. In 2005, Nadels bought 430 acres near Asheville, North Carolina, intending to sell a lot of up to $ 525,000 in a proposed development called Laurel Mountain Preserve. This project changes when prices collapse. Four lots donated to their foundation as tax abolition.

The Sarasota Herald-Tribune reported "The Nadels are known for their civilian activities, serving on board and donating money to charities: Habitat for Humanity, Jewish Family & Children's Services, and Girls Inc. who received $ 100,000 "All the cash prizes received and the promise of the couple in recent years. Nobody has any money invested in hedge funds. "Their Guy-Nadel Foundation generated over $ 1 million in donations, including $ 200,000 for Catholic churches, $ 100,000 to Sarasota Opera and $ 75,000 for local theater groups.

Maps Arthur Nadel

SEC charges and criminal charges

US Justice Judge Tampa Mark Pizzo rejected Nadel's request to be released on his own admission, and on January 30, 2009 ordered him to be held unsecured in Pinellas County prison. On February 2, 2009, Judge Pizzo issued a revocation order, moving the case from the jurisdiction of the Central District of Florida to the Southern District of New York.

The SEC says Nadel has transferred at least $ 1.25 million from two hedge funds to a secret bank account he controls.

16-Count indictment

On April 15, 2009, US Judge Kevin N. Fox in Manhattan appointed Mark Gombiner, a lawyer from the New York Federal Defender, Inc., to represent Nadel.

On April 28, 2009, in the Southern District of New York, federal regulators dropped a 15-count count against Nadel, who carries a maximum prison sentence of 280 years.

"Nadel asked prospective clients to invest in funds by making misrepresentations about the performance and value of funds, including that the net asset value of each fund is tens of millions of dollars.The US Attorney's Office in New York said in a statement. Nadel also claims to investors that the purchase and the sale of securities in the Fund has generated more than $ 271 million in profits.In fact, Nadel's trade generates an overall net loss in funds, "the US Attorney's Office in New York. York said in a statement.

On February 25, US District Judge Denise Cote has decided she can be released after posting a $ 5 million bond, including $ 1 million in cash, and four people with "close ties" to secure her bond and subject to electronic surveillance. He required Nadel to cooperate with the recipient of the funds and to identify the location of $ 30 million he allegedly resigned since October 2008.

The criminal case is US. v. Nadel , 09-mJ-00169, US District Court, Southern District of New York (Manhattan).

Trust of bankruptcy

The Securities and Exchange Commission (SEC) won a court order on January 21, 2009, freezing Nadel's assets. On February 11, 2009, the recipient, Burton Wiand moved to freeze the $ 650,000 Marguerite J. Nadel Revocable Trust, and the Nadel property in Asheville, North Carolina. Six hedge funds and two investment management firms are named as defendants of aid. They are: Scoop Real Estate L.P., Valhalla Investment Partners L.P., Victory IRA Fund Ltd., Victory Fund Ltd., Viking IRA Fund LLC, Viking Fund LLC, Valhalla Management Inc. and Viking Management Inc. in this case. The SEC case is Securities and Exchange Commission v. Nadel , 09-cv-00087, US District Court, Central Florida District (Tampa).

By the end of 2007, all six funds contained $ 18 million. Wiand identified $ 397 million taken from investors. Approximately $ 350 million is paid in the form of distributions to investors and fees. He has recovered $ 120,000 of investor funds incorrectly transferred to two individuals, and received nearly $ 261,000 in business revenue from ongoing operations until February 28, 2009. Wiand estimates that fraud may start earlier than 2003, and intends to recover additional funds of Moodys' fees collected from Scoop.

Clawbacks

Wiand has identified more than 80 investors making "false profits" in Nadel's hedge funds and have asked them to return the money. Non-refundable funds will be pursued in court.

Robert O. Chambers Trust, received $ 301,614 with fake profit. Blake L. Chambers, trustee of the trust, agreed within 14 days to pay $ 271,453, or 90 percent of the total.

Gary Musser 70, of Las Vegas agreed to pay $ 192,571.43, which included a 10 percent discount offered to settle out of court. He has paid income tax on the money, but the Internal Revenue Service only allows him to return three years in changing his return to get a refund.

Others are involved

The Moodys has given a statement to the US Attorney.

Neil and Chris Moody, father and son partner Nadel served as general partners in Vikings, Vikings IRA and Valhalla, which at one point accounted for half of the value of the real brokerage firm, estimated at $ 97 million in asset management fees 2 percent per year, plus the a much larger 25 percent incentive to run what is described as a very profitable hedge fund. The funds reached $ 72 million at its peak in 2004. In 2007, the true value of these three funds was $ 7 million.

Burton Wiand has confirmed he will take legal action against Moody to gain control of assets associated with the failed Nadel hedge fund. Neil Moody who told his 600 investors that the money they invested in Scoop's protected funds had been lost. The Moodys have denied knowing anything about the Ponzi scheme, but many Nadel investors claim that they are their primary contact. According to Wiand, Nadel and Moodys both stated that hedge fund trading activities earned more than $ 272 million in profits when "they actually lost $ 18.4 million.The three Vood funds managed by Moody with Nadel had results ranging from a 4 percent annual profit to 24.5 percent loss per annum, but Moody's told their investors that the return for funding was much higher.

A case of civil fraud against them has been filed on behalf of Louis Paolino, Jr. which lost more than $ 5.8 million, and some have been deployed at Sarasota beachside residence owned by both men.

Accountant Nadel, Michael D. Zucker, has not been licensed as a Certified Public Accountant in the state of Florida since 1990.

David S Band Law Firm "Weintraub PL Band" will pay nearly $ 1 million to settle the claim that it is the front and center in a conspiracy to hide money from the recipients in the Arthur Nadel Ponzi scheme.

src: www.heraldtribune.com

"The most consistent return I've seen"

Dana Nadel is said to have returned 21.6% in 2002 and 19.8% in 2001, the year when S & P 500 returned -23.3% and -13.0% respectively. An article in The Wall Street Digest by Donald H. Rowe, Chairman of Carnegie Asset Management, cites Nadel's superior refund of funds as "the best track record and the most consistent result I have ever seen." Rowe apparently ignored the initial concerns about the source of Nadel's return, writes: "My curiosity about Nadel's computerized trading program finally led to a due diligence visit to Nadel & Moody's office.And I did not learn the mathematical formulas in Nadel's" black box "computer program. "

Despite the statistical instability of the stated return, Rowe's article offers luminous recommendations and includes contact information for the funds. The fine print revelation in this article reveals that "Carnegie Asset Management is affiliated with The Wall Street Digest, Inc., such as The Wall Street Trader, Inc. Carnegie Asset Management, from time to time, makes referrals to MRM Asset Allocation Group, Inc., and/or Nadel Moody Group, registered investment advisers not affiliated with each other or with Carnegie Asset Management, whose Carnegie Asset Management receives monetary compensation. "

The April April Burton Wiand April 2009 report, submitted as part of the Securities and Exchange Commission civil suit against Nadel, said Nadel paid about $ 53 million in "fictitious gains" as part of his Ponzi scheme.

src: vp.nyt.com

Total value of hedge fund

Nadel is traded for three funds formed by the Valhalla Management partnership and Viking Management and three funds formed by Scoop Management and Scoop Capital LLC. Scoop is made by Nadel himself. Viking and Valhalla were created by an unnamed partner.

According to the 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, and 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, and cash, $ 131,139.52

The total value of the hedge fund securities on January 14 - the date of Nadel's disappearance - is $ 15,214.92, and cash in hand is $ 491,625.87.

src: 4.bp.blogspot.com

Investor losses

More than 371 investors invested $ 397 million. Loss of investors' pockets is estimated at $ 168.7 million.

Neil V. Moody, 70 told Associated Press that his closest family had lost $ 12 million to Nadel. Moody, one of Nadel's business partners, pointed out that the $ 350 million figure may increase as Nunc himself exaggerates the success of the fund.

Dennis Raefield, president and chief executive of Mace Security International Inc., based in Horsham, Pennsylvania, claims that Nadel's Victory Fund failed to pay $ 2.2 million as promised, a day after Nadel disappeared on January 15, 2009. Raefield said he asked Nadel in June 2008 to redeem Mace's $ 3.2 million investment in short-term hedge funds, Victory. The money should be paid on October 10, 2008, or 10 business days after the close of the third quarter. On 15 October, fund managers asserted their right to withhold payment "due to exceptional market situation". After the negotiations, the fund agreed to pay the money in two installments. Mace only received one payment of $ 1 million on November 5th.

Louis Paolino, Jr., a former Mace Security executive officer lost more than $ 5.8 million in private funds at Viking Fund LLC. The lawsuit claims that Moodys is fraudulently earning money from investors in Scoop funds and buying a home for a portion of the proceeds.

David Walters of Ocala, Florida lost most of his pension from Bethlehem Steel, more than $ 670,000.

Michael Sullivan, Nadel's neighbor, an 80-year-old lawyer, invested $ 15 million.

Sullivan, an Illinois businessman recommended by his neighbor, put $ 250,000 into Scoop Management Nadel three years ago, and an additional $ 1.4 million just before Nadel disappeared.

Brad Lerner, Sarasota, invested $ 500,000.

Drew Clayton, Sarasota

src: www.theparisreview.org

Other business interests

On January 27, 2009, Venice Jet Center LLC and Tradewind LLC, two of Nadel's businesses, were ordered to become curators by US Tampa District Judge Richard Lazzara. The judge appoints Burton Wiand's lawyer as Nadel's recipient, saying in court that the business was bought with fraudulent money. The Venice Jet Center provides charter services and flight schools, and "is a viable business with the potential to generate assets for curators". Tradewind owns and controls at least five aircraft and has an airport hanger at Newnan-Coweta County Airport in a suburb of Atlanta, Georgia. The Venice Jet Center trains several 9/11 hijackers under different ownership. Tradewind Aviation is run by his son Chris, who has an airline pilot license. The federal record shows Tradewind has two Cessna Citation jets, a Lear Jet, a helicopter, and some smaller aircraft.

Public records indicate that Nadel is an officer of Summer Place Development Corp., an undeveloped package in Manatee County, Florida of 6.5 acres (26,000 m ² ). He is listed as a director, secretary, and treasurer.

src: www.wiandlaw.com

See also

• Bernard Madoff
• Nicholas Cosmo
• Joseph S. Forte
• Marcus Schrenker
• Raoul Weil
• Marc Dreier

src: s2-ssl.dmcdn.net

References

src: www.theparisreview.org

External links

• "Probe Fla Police Claim Claim, Investment Manager Missing", AP Via Yahoo News (January 17, 2009)
• "Investment Manager Reported Missing", Bloomberg News (January 17, 2009)
• "America's Top Rated Money Manager", The Wall Street Digest (January 19, 2009)
• "The FBI and the SEC Investigate Nadel's Fund", The New York Times (January 19, 2009)
• "SEC Sues Missing Arthur Nadel's Money Manager", Chicago Tribune (January 22, 2009)
• "Problems Bringing Mini-Madoff to Light", The New York Times (January 28, 2009)
• 16-Count Indictment, United States v. Arthur G. Nadel Case No. 09-mj-00169, (28 April 2009).
• Nadel Recipient Website
• SEC designates Burton W. Wiand receiver

Source of the article : Wikipedia