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 he scammed investors out of $162 million. Federal prosecutors have requested a sentence of 24 years in prison, while Nadel’s lawyers, citing his failing health and remorse, have asked for five years. Nadel is now scheduled to be sentenced on Thursday, October 21, following three prior delays.
Nadel’s lawyers paint this ponzi scheme as being greater than a one-man operation, and that Neil and Christopher Moody played integral parts despite not being criminally charged. In fact, Nadel’s lawyers state the Moodys, not Nadel, were the primary parties responsible for inducing the victims to invest. Investors also place blame on Donald Rowe, who advertised the funds in his newsletter and received a commission. Nadel’s attorneys also point out that the Moodys never once reviewed the funds’ trading statements from Goldman Sachs, although counsel for the Moodys disputes this claim, stating Nadel kept the statements hidden.
The Moodys did settle charges brought against them by the SEC. They are banned from the securities industry for five years and must disgorge all profits made from the scheme.