Former Sarasota, FL, fund manager pleads guilty to a $162 million Ponzi scheme
February 25th, 2010 - 4:12 am ICT by BNO NewsMANHATTAN, NEW YORK (BNO NEWS) – Former Hedge fund manager, of Sarasota, Florida, pleaded guilty to fifteen counts of securities fraud, mail fraud, and wire fraud, U.S. Attorney Preet Bharara announced on Wednesday.
Arthur G. Nadel, 77, planned and executed a Ponzi scheme to defraud investors in six different investment funds causing $162 million in losses. From 1999 to January 2009, Nadel persuaded people to invest their retirement money in the funds claiming that they will receive double-digit yearly returns.
In reality, Nadel stole investor money to support his lifestyle and several businesses. To support his claims, Nadel created false documents that confirmed his fictitious positive returns. Nearly 250 people invested more than $397 million in the funds. As a result the investors lost approximately $162 million.
“Arthur Nadel cheated his victims out of hundreds of millions of dollars of their retirement money and savings by lying to them over and over again and claiming false returns and profits. Many of the victims were elderly and retired and relied on the money that they invested in Nadel’s funds,” U.S. Attorney Bharara said.
Nadel faces a maximum sentence of 20 years in prison for each count and a fine of $5 million or twice the gross gain or loss from the offense. His sentence is scheduled for June 11.
- Orange County, CA resident sentenced to over 10 years for his part in $61 million Ponzi scheme - May 14, 2010
- Two former employees of Bernard Madoff arrested - Nov 19, 2010
- Manhattan woman pleads guilty to fraud involving foster children aid - Sep 23, 2010
- Widow gives $7.2bn back to Madoff victims in largest forfeiture in US history - Dec 18, 2010
- Bernard Madoff's Beneficiary Jeffry M. Picower's Estate To Return $7.2 Billion - Dec 18, 2010
- Ex-Goldman Sachs director Gupta arrested, charged in insider trading case - Oct 26, 2011
- Bernard Madoff's son, Mark, found dead on second anniversary of father's arrest - Dec 11, 2010
- President of a NY money services company arrested for $12 million bank fraud - Feb 10, 2010
- PA investment manager charged in multi-million dollar Ponzi scheme - Apr 05, 2010
- Wall Street Sheriff Preet Bharara on Time cover - Feb 03, 2012
- Rajat Gupta indicted in insider trading case - Oct 26, 2011
- Alleged Ponzi schemer charged for operating $1 million scam - Feb 02, 2010
- Trustee charges HSBC with funnelling disgraced Ponzi King Madoff's massive fraud - Dec 06, 2010
- Malibu-based "Cap X" fraudster arrested in $12 million Ponzi scheme - Feb 06, 2010
- PTA moms Ponzi scheme nets $14 million - Jul 07, 2011
Tags: 5 million, arthur, bno, false documents, hedge fund manager, investment funds, investor money, losses, mail fraud, manhattan new york, maximum sentence, nadel, ponzi scheme, preet bharara, profits, retirement money, sarasota fl, sarasota florida, securities fraud, wire fraud