Founder of Scoop Management Sentenced to 14 Years in Prison
Arthur Nadel, the 77 year old founder of Scoop Management, Inc. in Sarasota, FL, pled guilty in a 15 count indictment for defrauding investors and was sentenced to 14 years in prison. The charges included securities fraud, wire fraud and mail fraud. The judge imposed 3 years of supervised release and ordered Nadel to forfeit $162 million in proceeds from the crime, in addition to the prison sentence. The judge cited his age and fragile health for sentencing him to less than the 19 ½ years sought by the prosecution. According to court records, Nadel invented net asset values for the hedge funds he ran and illegally transferred money from them to support his lavish lifestyle, real estate investments and his wife’s flower shop. Potential investors were told the funds were yielding from 11 percent to 55 percent a year. Nadel is likely to be incarcerated in the same Federal facility as Bernie Madoff, who is serving a 150 year sentence for history’s biggest Ponzi scheme.
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