Arthur Nadel’s Future Freedom? – Ponzi Pathology or Pathos
Arthur Nadel is back in the news. He is approaching the sentencing phase. As a reminder Arthur Nadel a Florida hedge fund manager who, to refresh memories, pulled a Sam Israel and disappeared a little over a year ago just as he was due to pay investors $50 million. Here is a video about Mr. Nadel’s time on the run:
Here is a link to our previous post on Mr. Nadel. He later surrendered to authorities in January 2009. Nadel has finally admitted to perpetrating the $168 million fraud. His attorneys say the former Sarasota hedge-fund operator is in poor health and might not survive a longer stretch in a federal prison.
These sentences are on top of other lawsuits including one filed by six victims in the Arthur Nadel (Scoop Management, Inc.) scandal have filed a $2.3 million lawsuit against newsletter editor and publisher (Don Rowe) . Nadel’s Scoop managed six private investment funds.
His attorney’s also argue that the criminal conduct of Nadel, 77, was not an effort to live a lavish lifestyle, unlike his partners, Neil and Christopher Moody.Neil and Christopher have denied any wrongdoing as outlined in my previous post.
“Mr. Nadel’s conduct, although reprehensible, was not motivated by greed but by his pathological desire for admiration and his inability to face and admit to others that he was a failure,” his attorneys said.
If Nadel were to be sentenced to five years — and get credit for his 20 months of detention in the Metropolitan Correctional Center (where Bernard Madoff spent some time) — he could be back in Sarasota in less than 31/2 years.
But there are significant hurdles to that future. Prosecutors are seeking a much stiffer sentence. They believe Nadel is eligible for nearly 22 years, and may submit their own sentencing recommendations this week.
Investors who earlier filed victim-impact statements have urged U.S. District Judge John G. Koeltl to lock up Nadel for the rest of his life. He is scheduled to be sentenced Oct. 8 in New York for orchestrating a Ponzi scheme that cost investors $168 million in out-of-pocket losses. He pleaded guilty in February to 15 federal fraud counts. It will be interesting to see if the court complies with Nadel’s pleas or delivers a stiff sentence….
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