Sarasota Ponzi Scheme Victims to Receive Another Check in Nadel Case
According to an article from theSarasota Herald-Tribune, victims in the alleged Arthur Nadel Ponzi scheme should be receiving some of their losses back soon. Victims of the Sarasota investment scam had previously received $26 million back in May of this year, and the new payments are reported to total $22 million.
According to prosecutors, Arthur Nadel, who died in April this year, worked with partners Christopher and Neil Moody to lure investors into six hedge funds they operated. They reportedly told investors that their hedge funds were worth around $350 million, but prosecutors say the hedge funds were really only worth about $500,000. It is believed that the scam run by Nadel and his partners used the money from new investors to pay off prior investors to keep up the appearance of legitimacy. Nadel passed away at age 79 while serving 14 years in prison for the scheme.
However, although this is the second time victims in the scam have received a check for their losses, the total amount investors have recovered still only represents about 37% of the total amount that they are reported to have lost in the alleged Ponzi scheme. Most of the money going to victims in this round of checks comes from a settlement with law firm Holland & Knight, which was accused of failing to report illegal activities related to Nagel-operated hedge funds. Other lawsuits related to the alleged Ponzi scheme are still pending.
If you have lost money in a Ponzi scheme or investment scam, reach out to an experienced Ponzi scheme attorney for further guidance. You can schedule a completely free and confidential case evaluation by calling Meyer Wilson or by filling out our contact form.