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Arthur Nadel Ponzi Scheme

Arthur Nadel Ponzi Scheme Investor Lawsuits

Arthur Nadle Ponzi Scheme | Lawsuits, Lawyers | Hedge Fund, Scoop Capital Management, Security Fraud

The lawyers / attorneys at our firm are offering free consultations to victims of  Arthur Nadel's alleged Ponzi scheme.  The Florida hedge fund manager was arrested on securities fraud charges on January 27, 2009 after spending the previous two weeks on the run.

Before his arrest, Nadel ran Scoop Capital LLC and Scoop Management Inc., both based in Sarasota, Florida.  Through Scoop Management, he managed six private investment funds, including Viking IRA, Valhalla Investment Partners LP, Viking, Victory, Victory IRA and Scoop Real Estate.  Nadel claimed the funds were worth $342 million, but investigators now put their value at somewhere around $500,000.

Nadel managed money for around 600 investors, and it is estimated that his fraud may have cost his clients as much as $350 million. As a result of his alleged fraud, hundreds of investors who trusted Arthur Nadel have seen their entire life savings evaporate.

The Arthur Nadel Ponzi scheme lawyers at our firm are committed to making sure victims of his scam receive the justice they deserve. If you lost money as a result of investing  with Arthur Nadel, you may be entitled to restitution.  Please contact one of our Arthur Nadel Ponzi scheme lawyers as soon as possible to protect your legal rights.

Arthur Nadel Disappearance

Nadel's alleged Ponzi scheme first came to light after his family reported him missing on January 14, 2009.  He left what was termed a suicide note in which he sounded "distraught" and apologized for losing his clients' money.  However, it was immediately suspected that Nadel was alive and on the run.

After Nadel went missing, his partner, Neil Moody, told investors in a statement that the funds managed by Nadel “may have virtually no remaining value”. Moody apparently reported the situation to the Securities and Exchange Commission (SEC) and other authorities.

Following his disappearance, law enforcement officials in Florida began receiving scores of calls from angry investors.  Many had entrusted Nadel with their entire life savings and retirement funds.  A lieutenant with the  Sarasota police told The New York Times that “allegedly hundreds of millions of dollars” of investor money has gone missing.  One report said Nadel’s partners believed as much as $350 million had disappeared from the Scoop funds.

Nadel's disappearance occurred one day before he was supposed to distribute $50 million in payouts to investors.  The six funds Nadel managed had sustained losses in October 2008, but an internal accountant for Scoop Management told the Associated Press that Nadel did not seem nervous about the January redemption.

Other media outlets reported that Nadel had been putting off investors who requested withdraws in the weeks before his disappearance.  Reportedly, many investors who requested withdraws from their funds in December and January were told by Scoop employees they would have to wait until the January 15 redemption.  These investors said that in the past, Scoop had always processed their requests immediately.

After two weeks on the lam, Arthur Nadel finally surrendered to the FBI in Tampa,  Florida on January 27.  The FBI charged Nadel with securities fraud and wire fraud.  If convicted, Nadel faces 40 years in prison.

Following his arrest, the FBI said that Nadel would likely face more charges, and the scope of its fraud investigation against him would probably expand.  Investigators also said they were looking  to others and their knowledge about Nadel's Ponzi scheme.

SEC Charges Against Nadel

While he was missing, the SEC charged Nadel with securities fraud. According to the SEC’s complaint, Nadel provided false and misleading information for dissemination to investors about the funds’ historical returns and falsely overstated the value of investments in the funds by approximately $300 million.

The SEC said the funds Nadel managed appeared to have total assets of less than $1 million. The complaint also alleged that prior to his disappearance, Nadel transferred at least $1.25 million from two of the funds to secret bank accounts that he controlled.

The SEC also charged that Scoop Capital LLC and Scoop Management, Inc., provided investment advice to all of the funds and also engaged in fraud as a result of Nadel’s actions.  Scoop Capital LLC and Scoop Management, Inc., were  named as relief defendants in the SEC complaint.

 The SEC alleged that Nadel provided false and misleading information to the relief defendants for dissemination to investors through account statements and through offering memoranda.  For example:

  • Offering materials for three of the funds represented that they had approximately $342 million in assets as of Nov. 30, 2008. In fact, those funds had a total of less than $1 million in assets at that time.
  • Offering materials for at least several of the funds represented monthly returns of around 11 to 12 percent between January and November 2008. In fact, at least three of the funds had negative returns during that time and another fund had lower than reported returns.
  • One investor in one fund received an account statement for November 2008 indicating that her investment was valued at almost $420,000. In fact, the entire fund had less than $100,000 at that time.

The SEC obtained a court order freezing Nadel's assets, as well as those of his funds.  A receiver has been appointed to examine assets and oversee any money left.  How much investors could ultimately recover is unknown.

Legal Help for Arthur Nadel Ponzi Scheme Victims

Our Arthur Nadel Ponzi scheme lawyers have helped many security fraud victims in their struggle against unscrupulous hedge fund managers, brokers and others who have stolen their savings.  We will use every means available to make sure that Arthur Nadel's victims are compensated to the fullest extent possible.

If you suffered a financial loss because of Arthur Nadel's alleged fraud, you have valuable legal rights.  Please fill out our online form, or call 1-800-YOURLAWYER (1-800-968-7529) to discuss your case with one of our Arthur Nadel Ponzi scheme lawyers.


Arthur Nadel Ponzi SchemeRSS Feed

More SEC Charges in Arthur Nadel Ponzi Scheme

Jan 14, 2010
The Securities and Exchange Commission has filed more civil chargers in the Arthur Nadel Ponzi scheme.  This time, the Commission is targeting the father-son investment team of Neil and Christopher Moody. The SEC complaint alleges that the two disseminated misleading materials to investors about their hedge funds Valhalla Investment Partners L.P., Viking IRA Fund LLC, and Viking Fund LLC from at least 2003 through December 2008 According to the Commission, the materials misrepresented the...

Nadel Investors Going After His Lawyers

May 19, 2009 | Parker Waichman LLP
Some former investors of accused Florida Ponzi schemer Arthur Nadel have filed a lawsuit against his former lawyers.  According to a report on The AMLaw Daily,  the investors allege that some offering documents the firm Holland & Knight  helped Nadel prepare did not mention some important information, including the fact that he was once disbarred for fraud.Nadel, who was recently indicted on 15 fraud counts, was president of Sarasota-based Scoop Management. The hedge funds...

Arthur Nadel Indicted on 15 Fraud Counts

Apr 29, 2009 | Parker Waichman LLP
Accused Ponzi schemer Arthur Nadel has been formally charged with 15 counts of securities fraud, wire fraud and mail fraud.  According to, in a federal grand jury indictment unsealed yesterday, prosecutors are also seeking to force Nadel to forfeit $360 million and property.Arthur Nadel was president of Sarasota-based Scoop Management. The hedge funds managed by Scoop included Viking IRA, Valhalla Investment Partners LP, Viking, Victory, Victory IRA and Scoop Real Estate....

Nadel Investor to Return $271,000+ in False Profits

Apr 24, 2009 | Parker Waichman LLP
The receiver charged with recovering Arthur Nadel's assets has reached an agreement with a second investor for the return of more than a quarter million dollars in false profits that were withdrawn from the accused Ponzi schemer's failed hedge funds.  According to the Sarasota Herald-Tribune, this is the second time  receiver Burton Wiand has struck such an agreement with a Nadel investor.Earlier this week, we reported that Wiand had identified 80 individuals who withdrew payouts from...

Arthur Nadel Receiver Seeking Return of "Profits"

Apr 20, 2009 | Parker Waichman LLP
Investors of accused Florida Ponzi schemer Arthur Nadel have been asked to return any "profits" they received as a result of investments in his hedge funds.  According to the court appointed receiver charged with recovering Nadel's assets, such payments constituted false profits because they were paid out of money deposited by new investors.Arthur Nadel was president of Sarasota-based Scoop Management. The hedge funds managed by Scoop included Viking IRA, Valhalla Investment...

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