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Nadel receiver seeking recovery

TAMPA — The court-appointed receiver handling Florida hedge fund manager Arthur Nadel's case is asking investors who made money in the alleged Ponzi scheme to return it.

Burton Wiand has identified more than 80 so far who made "false profits" in Nadel's hedge fund. False profits are returns to clients that exceed their original investment.

Nadel allegedly swindled more than 300 people out of nearly $400 million in a long-running scheme. The 76-year-old remains jailed on securities and wire fraud charges.

Investigators are calling any profits "false" because Nadel allegedly paid old investors off with new investors' money.

Wiand didn't say how much in "false profit" could be found, but one investor has already agreed to return nearly $10,000.

Wiand said unreturned funds will be pursued in court.

Nadel receiver seeking recovery 04/18/09 [Last modified: Saturday, April 18, 2009 9:42pm]
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