Well, they sure figured out how to avoid getting White Collar Criminal friendly Sarasota involved in the prosecution of accused fraudster Arthur Nadel. They charged him in New York as he traded through a brokerage in the city. Woops. And while we are at it, we’ll note that it looks unlikely that he is going to be able to swing penthouse arrest.
A U.S. judge set a $5 million bond, house detention and other conditions of bail on Wednesday for accused hedge fund manager Arthur Nadel, who authorities say was on the run for two weeks in January before the FBI arrested him.
Nadel’s lawyer indicated that his client will not be able to meet the conditions of release set by Judge Denise Cote at a hearing in U.S. District Court in Manhattan.
U.S. judge sets bail conditions for fund manager Nadel [Reuters]
Don’t worry. The regulators are on it like white on rice. They are screaming through materials on “island time,” baby. Yes, yes, sure, they heard the screams, but they never looked before because the neighbors never complained. Now that blood is running under the door into the sidewalk, however, they’ve decided to take matters in hand and apply for a search warrant. The judge, however, is on vacation until next week so, we’ll have to wait until then to open the door. Don’t worry. They’ve flown in experts from Sarasota to assist in the investigation. Until they arrive, they will just play trivial pursuit with the prime suspect. (What was Columbo’s first name?)
Antigua and Barbuda regulators will quiz Stanford International Bank officials about issues raised in press reports, but have not launched a formal investigation of the Caribbean nation’s largest bank, in part because no customers have complained, the top regulator told Reuters on Friday.
Antigua regulator to quiz Stanford [Reuters]
Earlier: Dear Aspiring White Collar Criminal…
We are annoyed that more white collar criminals have not been reading the first part of the Dealbreaker guide: How To Properly Escape Capture Following Your Massive (or Relatively Massive) Financial Fraud. The latest slacker is Arthur Nadel, the Sarasota “hedge fund adviser” who skipped out with such ninja-like disappearing skills that the local constabulary decided to give up the chase when it was clear that he “did not want to be found.” Those skills apparently were insufficiently honed to carry him in the big leagues, as he surrendered to the FBI in Tampa earlier today. (Florida is an interesting choice as his green Subaru was found in the airport parking lot- we were not fooled by the “park the car in the airport and take no flight” trick).
Bloomberg hints that Madoff, and the attention to scandal around it, may have indirectly contributed to the discovery:
The fraud may have been uncovered because of the unrelated arrest on Dec. 11 of fund manager Bernard Madoff for duping investors out of $50 billion, the FBI said in a criminal complaint.
After years of rebuffing requests from an unnamed partner for an independent audit of his funds, Nadel agreed to one on Jan. 8, FBI agent Kevin Riordan said in a criminal complaint. Nadel fled six days later after telling his wife how to survive financially without him, Riordan said.
Ah yes, the dreaded “independent audit.”
Nadel, Missing Hedge Fund Adviser, Arrested by FBI [Bloomberg]
