Home

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

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.

  
What
Where


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.



 

RELEVANT JOBS

Law Clerk

USA-DC-Washington

C2 ALASKA, LLC Washington, DC   The Law Clerk II Journeyman- Division of Enforcem...

Apply now

Senior Business Development Manager

USA-DC-Washington

The Marketing Department at Arnold & Porter has an opening for a Senior Business Development Manager...

Apply now

Director of Administration

USA-VA-Arlington

Director of Administration (Communications/Litigation/Transactional Law Firm) Fletcher, Heald...

Apply now

Legal Executive Assistant

USA-VA-Arlington

Legal Executive Assistant (Communications/Copyright/Litigation)   Fletcher, Heald & Hi...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Attorney

USA-FL-Jacksonville

Jacksonville office of a BCG Attorney Search Top Ranked Law Firm seeks an attorney with 4-20 years o...

Apply Now

General Liability Associate Attorney

USA-GA-Atlanta

Atlanta office of a BCG Attorney Search Top Ranked Law Firm seeks general liability associate attorn...

Apply Now

Wealth Planning Senior Associate/Of Counsel

USA-NV-Reno

Reno office of a BCG Attorney Search Top Ranked Law Firm seeks wealth planning senior associate/of c...

Apply Now

SEARCH IN ARCHIVE

To Top