Judge May Free Nadel On Bail

Date: Thursday, June 18, 2009
Author: FINalternatives

After four months in jail, accused hedge fund fraudster Arthur Nadel may soon be able to go home to Florida.

A federal judge in New York, where Nadel faces mail, securities and wire fraud charges, said he was inclined to reduce the indicted hedge fund manager’s bail from $5 million. U.S. District Judge John Koeltl noted that, since his arrest in January, Nadel has not been able to come up with $1 million in cash to secure his bond, and pointed out that just about all of his assets and those of his wife have been seized.

The judge said he would consider allowing Nadel to post bail secured by his Sarasota, Fla., home, since “no other assets have been identified to secure the bond.” He scheduled a hearing for June 25.

Prosecutors have fought efforts to cut Nadel’s bail, noting that the Scoop Management chief went missing for two weeks after his alleged Ponzi scheme collapsed earlier this year. But Nadel’s lawyers say he can’t properly prepare for trial while jailed.

Nadel is accused of defrauding investors in six hedge funds he managed of $168 million. According to prosecutors, he “earned” $65.5 million, after taxes, in fees during the scheme, but that only $16 million has been recovered.