
SEC charges fugitive trader for hedge fund fraud
Losses & Lawsuits
Washington, DC - Arthur Nadel, a trader and investment adviser for six hedge funds, has been charged with fraud by the Securities and Exchange Commission (SEC). The US regulator says Nadel provided false and misleading information for dissemination to investors, overstating the value of investments in funds by approximately $300 million.
The funds in fact contained less than $1 million. The complaint also alleges Nadel, who has been missing from his Sarasota, Florida home since January 14 2009, transferred at least $1.25 million from two of the funds to two secret bank accounts under his control.
The SEC's Miami office says two firms, Scoop Capital and Scoop Management, provided investment advice to the funds involved and also engaged in fraud as a result of Nadel's actions. The SEC has frozen the defendants' assets and is appointing a receiver.
Relief defendants
The six hedge funds and two other investment management companies involved are also charged as relief defendants, as a result of the false information from Nadel that they disseminated to customers. The SEC says the firms implicated are co-operating with its investigation.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Grim repo warning spotlights BNP Paribas booking model
Federal regulators may be targeting French bank’s Paris-based book of US Treasuries
We’re all outliers now: Europe’s unflattering IRRBB test
Banks, fearing overreaction from supervisors, urge European Commission to reject NII-based assessment
SEC targets ‘dark magic’ in fixed-income pricing with Bloomberg fine
US regulator is going after pricing vendors that deviate from their published methodologies
Alameda’s mystery bank stake reignites Fed deposit debate
Crypto challenger Custodia accuses regulator of unlevel playing field over master accounts
More EU banks will fail new IRRBB test as rates push upwards
Half of all EU banks could cross outlier threshold for new test of net interest income
Finra head recognises ‘challenges’ for bond transparency drive
Cook says regulators thinking about industry’s operational and liquidity concerns
Why central banks shouldn’t ignore stablecoins
Rapid growth of stablecoins could impair monetary policy transmission
Hedge funds doubt tall tales around UK short-selling review
FCA has never used powers to ban short-selling, but reporting tweaks would be welcome