Make us your home page
Instagram

Receiver in Nadel Ponzi scheme sues Wells Fargo

SARASOTA — The receiver in the Ponzi scheme of Arthur Nadel, a former hedge fund manager from Sarasota, filed a lawsuit Thursday against Wells Fargo, seeking millions of dollars from the nation's fourth-largest bank over its involvement in the scheme that defrauded hundreds of investors.

The lawsuit from receiver Burton Wiand contends Wachovia Bank — now owned by Wells Fargo — played an "essential" role in the fraud by allowing Nadel, now serving a 14-year prison sentence in North Carolina, to siphon funds into shadow bank accounts.

The lawsuit seeks monetary damages from Wells Fargo, but the exact amount is unclear. Investors lost $168 million in the scheme, and attorney Terry Smiljanich said he will pursue a sum equal to that amount, less what the receivership recovers from others.

"The bank turned its back on its responsibility under the law and allowed Nadel free rein to steal this money," Smiljanich said. "He robbed these innocent victims blind, in some cases taking their entire life savings."

Nadel's relationship with Wachovia was so cozy, the bank invested $550,000 in two of his hedge funds, cashing out more than $425,000 in profits two months before the scheme imploded in January 2009, the lawsuit said. The bank later returned those "false profits" to the receivership.

Wells Fargo declined comment.

The lawsuit, filed in Sarasota Circuit Court, also names Timothy Ryan Best, a former vice president with Wachovia's Private Banking Group in Tampa who left Wells Fargo in October.

Receiver in Nadel Ponzi scheme sues Wells Fargo 02/09/12 [Last modified: Thursday, February 9, 2012 10:15pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Last steel beam marks construction milestone for Tom and Mary James' museum

    Growth

    ST. PETERSBURG — Tom and Mary James on Wednesday signed their names to the last steel beam framing the 105-ton stone mesa that will be built at the entrance of the museum that bears their name: the James Museum of Western and Wildlife Art.

    The topping-out ceremony of the James Museum of Western & Wildlife Art was held Wednesday morning in downtown St. Petersburg. Mary James (from left), husband Tom and Mayor Rick Kriseman signed the final beam before it was put into place. When finished, the $55 million museum at 100 Central Ave. will hold up to 500 pieces of the couple's 3,000-piece art collection. [Courtesy of James Museum of Western & Wildlife Art]
  2. Heights Public Market to host two Tampa Bay food trucks

    Business

    TAMPA — The Heights Public Market announced the first two food trucks for its "rotating stall," which will feature new restaurants every four months. Surf and Turf and Empamamas will be rolled out first.

    Heights Public Market is opening this summer inside the Tampa Armature Works building.
[SKIP O'ROURKE   |   Times file photo]

  3. Author Randy Wayne White could open St. Pete's biggest restaurant on the pier

    Food & Dining

    ST. PETERSBURG — The story begins with Yucatan shrimp.

    St. Petersburg Deputy Mayor Kanika Tomalin, pilot Mark Futch, Boca Grande, St. Petersburg Mayor Rick Kriseman, and author and businessman Randy Wayne White,  Sanibel, exit a Maule Super Rocket seaplane after taking a fight around Tampa Bay off the St. Petersburg waterfront, 6/28/17.  White and his business partners are in negotiations with the City of St. Petersburg to build a fourth Doc Ford's Rum Bar & Grille on the approach to the St. Petersburg Pier with a second event space on the pier according to White. The group met near Spa Beach after a ground breaking ceremony for the new pier. "We want to have our business open by the time the pier opens," said White. Other Dr. Ford restaurants are located on Sanibel, Captiva and Ft. Myers Beach. SCOTT KEELER   |   Times
  4. Guilty plea for WellCare Health Plans former counsel Thaddeus Bereday

    Business

    Former WellCare Health Plans general counsel Thaddeus M.S. Bereday pleaded guilty to one count of making a false statement to the Florida Medicaid program, and faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set, acting U.S. Attorney W. Stephen Muldrow of the Middle District …

    WellCare Health Plans former general counsel Thaddeus M.S. Bereday, pleaded guilty to one count of making a false statement to the Florida Medicaid program, and faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set, acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida stated Wednesday. [LinkedIn handout]
  5. DOT shows alternatives to former Tampa Bay Express toll lanes

    Transportation

    TAMPA — State transportation officials are evaluating at least a half-dozen alternatives to the controversial Tampa Bay interstate plan that they will workshop with the community over the next 18 months.

    Florida Department of Transportation consultant Brad Flom explains potential alternatives to adding toll lanes to Interstate 275 during a meeting Wednesday at the DOT’s Tampa office. Flom presented seven diagrams, all of which swapped toll lanes for transit, such as light rail or express bus, in the I-275 corridor from downtown Tampa to Bearss Avenue.