Arthur Nadel Turns Himself In

Written by Matthew J. Cochran

Sarasota (FNP)  Florida’s own version of Bernie Madoff, Arthur G. Nadel, turned himself in on Tuesday to face charges that he stole millions of dollars through a Ponzi scheme.

Nadel, who fled from Sarasota after investors demanded more than $50 million from him, faces two counts of securities fraud and wire fraud.

Mr. Nadel, 76, faces 20 years in prison for each count and a fine of up to $5 million. He may be moved to New York, where the charges were filed due to the fact that he used a brokerage house there to wire money from the hedge funds to his personal accounts.

The exact amount that Nadel siphoned out of the hedge funds from unsuspecting investors is undetermined at this point, but documents filed by the SEC state that he and his wife diverted “large sums” of money.

The scheme is speculated to have gone back as far as 2003, some say it may have been even earlier. Neil V. Moody, who contracted with Nadel to run the funds of his Viking Management and Valhalla Management, called for an audit after the arrest of Bernie Madoff made national news.

Madoff, of course, is alleged to have committed a much more extensive Ponzi scheme, cheating people out of billions of dollars. While Nadel may not have reached the level of Madoff, victims of his own scheme are not without major losses.

A prominent Sarasota physician who invested $500,000 in the funds was quoted as saying, “I’m delighted he turned himself in. I hope he brought $350 million with him.”

Florida Rep. Seth Mckeel Responds to the Challenge

The following is a letter sent to FNP from Florida Representative Seth Mckeel for the first of our “In The House” articles.  The following is the independent, thought and opinion of Rep. Seth Mckeel.

Floridians have all felt the impact of the current economic downturn.  We are experiencing tough times with more expected to come. That’s why making Florida affordable again and restoring Florida’s economy are top priorities for the Florida House of Representatives during the upcoming Legislative Session.

We know the challenges we’re experiencing in Tallahassee are a symptom of a slowing economy nationwide, not just in Florida  That’s why we will not resort to knee-jerk reactions to this economic challenge that demands a steady hand and thoughtful consideration of options and opportunities.  Unlike Congress, we will not spend money we don’t have.  Just like this common-sense approach works for managing the family budget, it will also work for the state budget.

The budget shortfall we are experiencing is not unexpected.  The Legislature prepared for this economic slowdown by setting aside significant budget reserves and crafting a budget that looked beyond the current year.  Now is the time to thoughtfully and deliberatively consider the best options available to responsibly balance the state budget.

Among the options we will consider are eliminating earmarks and reducing government inefficiency and waste.  Underscoring our commitment to restoring Florida’s economy is the belief that we should not ask Florida’s hard-working families for more money at a time when they are most vulnerable.

Revitalizing Florida’s economy is my number one priority, and House Republicans are working on a comprehensive plan to make that happen.  To that end, we will remain focused on our goal and invest in the programs and services that grow our economy.  By strengthening Florida’s economy, the budget outlook will also improve.

In the upcoming Session, I will continue to work with my colleagues in the Legislature to reduce spending and balance the budget responsibly.