Jailed Hedge Fund Manager Nadel Can’t Afford to Post $5 Million Bail
Arthur Nadel, the Florida-based hedge fund manager jailed on charges of securities and wire fraud, does not have the cash to post the $5 million bail set for him, his attorney said.
On February 25, 2009, federal court Judge Denise Cote set the bail amount for Nadel and said he could be released from jail in New York City on home detention and other restrictions. However, Nadel’s attorney, Todd Foster, indicated that he did not think his client could come up with the $1 million cash needed to secure his release on bail.
Foster indicated he may return to court later to seek a reduction in the bail amount after a full accounting of Nadel’s assets is completed. The judge noted that hundreds of millions of investor dollars remain unaccounted for.
Nadel, 76, remains behind bars after he was tracked down by the FBI in January after two weeks on the run. The money manager is accused of duping investors into sinking money into a venture he claimed had more than $300 million in assets, but prosecutors allege had less than $1 million.
Madoff, Others Implicated in Financial Scams
Nadel’s case unfolded around the same time as another disgraced Wall Street insider, Bernard Madoff, was accused in a separate massive financial fraud case. Prosecutors allege Madoff may have single-handedly swindled investors out of $50 billion. The former NASDAQ chairman was released on bail and remains on house arrest in his multi-million dollar Manhattan penthouse apartment, a fact which has angered some investors who lost millions in Madoff investments.
In another unrelated case, Texas billionaire financier Allen Stanford has been charged along with two associates of selling $8 billion worth of fraudulent certificates of deposit in Stanford International Bank. Stanford is accused of lying to investors and promising improbably high interest rate returns on investments using fabricated performance statistics.
Stanford remains out of custody as the federal investigation into his vast Stanford Financial Group continues.
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