{"id":30976,"date":"2012-08-30T08:37:39","date_gmt":"2012-08-30T12:37:39","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=30976"},"modified":"2012-08-30T09:02:26","modified_gmt":"2012-08-30T13:02:26","slug":"nadel-related-hedge-fund-victims-receive-25000000-settlement","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/08\/2012\/nadel-related-hedge-fund-victims-receive-25000000-settlement.html","title":{"rendered":"Nadel’s Hedge Fund Ponzi Scheme Victims Receive $25 Million Settlement"},"content":{"rendered":"

\"\"<\/a>New York (HedgeCo.Net) – A case that has been pending for over three years,\u00a0S.E.C. v. Arthur Nadel,\u00a0has been somewhat resolved.<\/p>\n

Lead attorney at\u00a0Wiand Guerra King P.L.,\u00a0Burton Wiand, who was appointed receiver for various entities associated with Arthur Nadel’s Ponzi scheme, has reached a settlement with hedge fund law firms Holland & Knight LLP (H&K)\u00a0and Scott MacLeod.<\/p>\n

The two firms provided legal services to Nadel and the hedge funds associated with his scheme. H&K and MacLeod will pay $25,000,000 to the receivership estate in exchange for a broad release of claims.\u00a0The 25 million is about 30% of the $162 million lost in the Ponzi scheme.<\/p>\n

“H&K prepared various Private Placement Memoranda (PPMs) used to sell interests in the hedge funds and that H&K\u00a0represented, as well as Nadel’s management companies.” Wiand Guerra King P.L., said in a statement, “The Receiver concluded that H&K failed to appropriately respond to certain “red flags” that could, upon further inquiry, have revealed Nadel’s scheme. The investigation also revealed that H&K breached certain duties to the hedge funds and allowed conflicts of interest to go unresolved.”<\/p>\n

Nadel was indicted on 15 counts including six counts of\u00a0securities fraud, eight counts of\u00a0wire fraud\u00a0and one count of\u00a0mail fraud\u00a0in a federal court. Arrested in\u00a0January 2009,\u00a0Nadel was held in the Metropolitan Correctional Center in Manhattan, the same facility where Madoff was sent to.\u00a0\u00a0<\/span>Nadel died in custody at the age of 80,\u00a0April 16, 2012.<\/p>\n

Alex Akesson
\nEditor for HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a> is a premier hedge fund database<\/a> and community for qualified and accredited investors only. Membership in HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – A case that has been pending for over three years,\u00a0S.E.C. v. Arthur Nadel,\u00a0has been somewhat resolved. Lead attorney at\u00a0Wiand Guerra King P.L.,\u00a0Burton Wiand, who was appointed receiver for various entities associated with Arthur Nadel’s Ponzi scheme, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,16034,3],"tags":[],"class_list":["post-30976","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-fraud","category-hedge-fund-rulings","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/30976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=30976"}],"version-history":[{"count":11,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/30976\/revisions"}],"predecessor-version":[{"id":30988,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/30976\/revisions\/30988"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=30976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=30976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=30976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}