Another Ponzi Scheme Crook Goes To Prison

By Jonathan Dienst
|  Thursday, Oct 21, 2010  |  Updated 8:31 PM EDT
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Another Ponzi Scheme Crook Goes To Prison

AP

Arthur Nadel

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Hedge fund manager turned Ponzi scheme fraudster Arthur G. Nadel was sentenced to 14 years in federal prison Thursday. 

According to prosecutors, Nadel duped clients who invested more than $330 million dollars with him -- then he used much of that money to buy himself large homes, airplanes, luxury vacations and invest in his wife's flower shop business.

"Through his massive Ponzi scheme, Arthur Nadel greased his own pockets and financed his lavish lifestyle," said U.S. Attorney Preet Bharara.  "'He cheated his elderly clients and unwitting victims."

Nadal was ordered to pay more than $160 million in restitution, as well as surrender five planes and a helicopter. But victims of his 10-year scheme will likely never get their money back, prosecutors said.

Nadel, who worked out of Florida, was sentenced in federal court in Manhattan. He said he "blames himself" for the crimes and the 77 year-old asked that he not die in prison.  

This case comes after Bernie Madoff was sent to prison for life for his $65 billion Ponzi scheme. Federal prosecutors in Brooklyn are also busy preparing for a planned guilty plea from accused Ponzi schemer Nicholas Cosmo, who allegedly stole millions from working class and middle class investors on Long Island. 

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