Author Archives: FLSecurities
Wife of Nadel’s Business Partner Surrenders Property as Settlement
Sharon Carter, formerly married to Neil Moody, has surrendered in excess of $1.1 million in property to try and settle her case against Nadel’s receiver. Moody was a business partner with ponzi-schemer Art Nadel. The $1.1 million, however, falls well short of the nearly $4 million the receiver claimed was transferred to Carter and… Read More »
Universal Fiduciary-Duty Standard Could Be Costly
In an effort to determine the utility of creating a universal fiduciary-duty standard in the retail investment advice industry, a recent study by the Securities Industry and Financial Markets Association shows that a potential universal standard could be costly to investors without adjustments being made for special broker-dealer practices. Broker-dealers, who currently adhere to… Read More »
NFL Players – Targets of Broker Abuse
NFL players are finding themselves abused by brokers with bad investments in Ponzi and other fraudulent schemes. Hall of Fame Quarterback, John Elway, recently disclosed that he and his partner gave $15 million to a hedge fund manager, who was allegedly running a Ponzi scheme. New Orleans Saint, Alex Brown, sued his financial advisors… Read More »
Arthur Nadel Sentenced to 14 Years in Prison
In what his counsel is characterizing as “a life sentence,” Arthur Nadel has been sentenced to prison for 14 years, stemming from a $162 million Ponzi scheme. Nadel had pled guilty to 15 counts of securities fraud, mail fraud and wire fraud. The sentence is roughly in between the five-year term advocated by Nadel’s… Read More »
Dept. of Labor Sues Investment Firms Over Madoff Losses
On October 22, 2010, the United States Department of Labor brought suit in federal court in Manhattan against four investment firms for their alleged failure to properly evaluate Bernard Madoff’s business practices prior to investing hundreds of millions of dollars in pension funds with him. The suit was brought on behalf of union-sponsored and… Read More »
As Sentencing Approaches, Nadel Deflects Blame
Art Nadel has now started placing blame at the feet of the people who helped him orchestrate the fraud, in an effort to convince U.S. District Judge John Koeltl for leniency on his sentence. In February, Nadel plead guilty to 15 counts of fraud for running a ponzi scheme out of Sarasota, FL, where… Read More »
SEC Sues Florida Hedge Fund and Its Managers Involved in Petters Ponzi Scheme
On October 14, 2010, the Securities and Exchange Commission brought a civil action against two Florida-based hedge fund managers and their funds for defrauding investors out of approximately $1 billion. The SEC charged Palm Beach Capital Management and fund managers Bruce Prevost and David Harrold with committing federal securities fraud by misleading investors about… Read More »
SEC Settles With Countrywide’s Former CEO for $67.5 Million
The SEC has settled with prior Countrywide Financial CEO Angelo Mozilo for $22.5 million in penalties to settle claims that he and two other former Countrywide executives misled investors about the subprime mortgage crisis. The settlement permanently prohibits Mozilo serving as an officer or director of a publicly traded company. Mozilo’s financial penalty is… Read More »
SEC Wins Securities Fraud Trial Against Miami-Based Companies and Its Owners
On October 1, a federal judge ruled in the SEC’s favor in a trial against two Miami-based companies and its owners for fraudulently stealing investor money through large, undisclosed commissions and fees via their selling of mutual funds. The Honorable Jose Martinez of the Southern District of Florida ordered U.S. Pension Trust Corp. and… Read More »
Trial Set for Founder of Alanar, Inc.
Jury selection began on Tuesday for the trial of Vaughn Reeves, founder and owner of Alanar, Inc. Reeves faces 10 counts of securities fraud in Indiana. Alanar, Inc. was a company allegedly in the business of securing mortgages for church construction projects. Reeves and his three sons, all of whom have plead not guilty,… Read More »