Case

Latest Missing Money Manager Was a Disbarred Lawyer

In 1 on January 23, 2009 at 1:33 pm

By Debra Cassens Weiss
 
A Florida hedge fund manager who disappeared last week was a disbarred
lawyer, but that fact was never disclosed in a memo for prospective
investors in one of his companies.
 
Sarasota money manager Arthur Nadel left a note threatening suicide,
but he later made a call on his cell phone from a town near New
Orleans. The Securities and Exchange Commission on Wednesday charged
Nadel with fraud, accusing him of overstating the amount in his hedge
funds by more than $340 million, according to the Sarasota Herald
Tribune. The funds actually held about $1 million, according to the
SEC.
 
Nadel, a graduate of New York University law school, was disbarred in
1982 for taking $50,000 out of an escrow account in a real estate
transaction to pay off loan sharks, according to the St. Petersburg
Times and a separate article in the Sarasota Herald Tribune.
 
Nadel told authorities he spent the money out of concern for the
president of a realty company whom he represented in the transaction,
and it wasn’t clear if he was himself involved with loan sharks, the
St. Petersburg Times says. Nadel later repaid the money. But the
realty company president told the Herald Tribune he believes Nadel
used the money to buy real estate in Florida.
 
When Nadel sought investors in 2004 for one of his investment
companies, Scoop Real Estate Limited Partnership, he did not disclose
the disbarment in a private placement memorandum, according to the St.
Petersburg Times.
 
The memorandum lists Holland & Knight as Scoop Real Estate’s general
counsel. A law firm representative told the St. Petersburg Times, “We
are reviewing our records and have no comment at this time.”
 
Read the complete article at:
http://www.abajournal.com/news/latest_missing_money_manager_was_a_disbarred_lawyer/
 
Comments
Posted by Big Law is dead –
 
Another one of the best and brightest from a top 20 law school bites
the dust. Wonder how many more companies will go under because they
used the best and the brigtest lawyers, accountants etc to cook their
books.
 
Posted by B. McLeod
 
They should have let Ellen B. manage this fund. She is reportedly a
member of the bar in good standing.

Posted via email from HKLaw Investigation

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