Holland & Knight to Pay $25 Million Settlement in Arthur Nadel Ponzi Scheme Case
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

The law firm of Holland & Knight is going to pay $25 million in order to settle a lawsuit regarding its involvement with Arthur Nadel, the Ponzi schemer from Sarasota. The settlement was announced on Tuesday and it will provide money to investors who lost over $162 million in the scheme from Nadel. The investors in the scheme will receive $18.2 million and the law firm of Johnson Pope Bokor Ruppel and Burns will receive the rest. The firm was hired for the case on a contingency basis, according to the Herald-Tribune.

“This may be less than some were hoping for, but is still a significant win for the investors,” said attorney Morgan Bentley. Bentley is from Sarasota and represented one of the victims of Nadel. Burton Wiand, the receiver for Nadel, has now collected $53 million for the receivership with the settlement.


A lawsuit was filed against the firm three years ago claiming that it knew of the activities by Scoop Management hedge funds that were operated by Nadel. The lawsuit said that the firm either missed or ignored signs that would have exposed the scheme from Nadel.

“We began to narrow the gap and finally reached an agreement,” Wiand said.

The law firm did not admit guilt when announcing the settlement and continues to maintain its innocence. “The settlement represents a compromise by the firm that reflects its consideration of various factors, including the substantial costs and investment of firm resources required to continue the litigation involving the funds,” firm general counsel Michael Chapman said.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

A trial was scheduled to start in October in Sarasota Circuit Court. Wiand was confident that the investors would have won. “It’s clear Holland & Knight disputed the allegations, but after proceeding with litigation for about three years, I think the handwriting was on the wall,” he said. The settlement has to be approved by U.S. District Judge Richard Lazzara. All objections or protests against the settlement have to be filed by October 1.

“Holland and Knight failed to discover that Nadel had been operating a fraudulent investment program, even when a cursory examination and review of his activity would have revealed his illegal activities,” the lawsuit claimed.

In May, close to 350 investors were issued checks totaling $26 million from the first distribution of funds that the receivership acquired. That total represented just 20 percent of the investors’ approved claims. Nadel passed away at the age of 79 in April while serving his 14-year prison sentence in North Carolina.


Interesting Legal Sites You May Like




Search Now

General Municipal Law Attorney with land use experience


Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business


McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Commercial Litigation Attorney with 4+ years of experience


Chicago office of our client seeks commercial litigation attorney with 4+ years of experience. The c...

Apply Now


Managing Director, Litigation Finance Investments


Title                ...

Apply now

Contract Associate


Seeking lawyer with at least 2 yrs experience in complex real estate transactional matters, with wil...

Apply now



Growing full-service law firm based in Fort Collins and Greeley is seeking a full time Paralegal. Th...

Apply now



Our Syracuse, NY office seeks an Associate with 3-5 years experience defending general liabilit...

Apply now

Most Popular


To Top