Hedge Fund Founder Sentenced To 14 Years In Prison
The 77 year old founder of Scoop Management, Inc. pled guilty to securities fraud, wire fraud and mail fraud. Arthur Nadel was sentenced to only 14 years in prison, which was less than the 19 ½ years sought by the prosecution, due to his age and fragile health. Additionally, he was ordered to forfeit the $162 million he made from the crime. Nadel created asset values for the hedge funds he ran, which served to fund his lavish lifestyle. Investors were told the funds were yielding between 11% and 55% a year. Mr. Nadel is likely to be incarcerated in the same Federal facility with Bernie Madoff, who is serving a 150 year sentence for history’s biggest Ponzi scheme.
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