Thursday, February 25, 2010

Wall of Shame: 2010 Edition

But I Did Everything Right hasn't done a Wall of Shame post since December so I thought I'd start the first Wall of Shame post of 2010 with the latest lawyer/thief to pull a Ponzi Scheme on innocent clients.

Mini Madoff
From today's Herald Tribune:

Arthur G. Nadel pleaded guilty Wednesday to 15 federal fraud counts, publicly admitting for the first time that he orchestrated a massive Ponzi scheme in Sarasota.

Once a key player in social and philanthropic circles, Nadel is now known as a "mini-Madoff" who bilked hundreds of millions of dollars from clients.

Nadel, 77, may spend the rest of his life in prison after his guilty plea to six counts of securities fraud, one count of mail fraud and eight counts of wire fraud. Each count carries a maximum sentence of 20 years.

"Arthur Nadel cheated his victims out of hundreds of millions of dollars of their retirement money and savings by lying to them over and over again and claiming false returns and profits," said Preet Bharara, the U.S. Attorney for the Southern District of New York.

"Many of Nadel's victims were elderly and relied on the money that they invested in Nadel's funds for their retirement. While he deceived and impoverished others, Nadel funded a luxurious life for himself and his associates," Bharara said.

Nadel paid himself $55 million in performance and management fees. He also diverted $23.5 million in investors' money and allocated $22 million in profitable trades to his own accounts.

He bought real estate developments, businesses, the Venice Jet Center and a fleet of jets and helicopters with proceeds from the Ponzi scheme. He will forfeit those assets in the plea deal.

He and his wife were large donors to a number of local charities and foundations with money that prosecutors say came from the scheme.


I also recommend reading L4L's latest post on another TTT dean who deserves a mention on our Wall of Shame, Dean Karen Rothenberg of U. Maryland Law. According to L4L, Rothenberg "received $350,000 in compensation for several sabbaticals she apparently never took" which was "on top of her $371,000 a year “base” salary".

1 comment:

  1. ex lawyer at the least.

    though guess what he got disbarred for?

    did you guess theft? ding you win.



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