A federal judge on Monday signed an order to transfer Sarasota hedge fund manager Arthur Nadel to New York to face wire and securities fraud charges.
Nadel’s attorney Todd Foster said he will appeal the order as well as a separate order issued Monday that reiterates federal Magistrate Judge Mark A. Pizzo’s decision to deny bond for Nadel.
Foster said the order to move Nadel’s case to New York is “automatic” because the Southern District of New York is the jurisdiction that brought the charges against Nadel.
“The Middle District of Florida never filed an action against Art so there’s no reason to keep him here,” Foster said. “There’s no case here.”
But Foster believes Nadel should remain free on bond with certain restrictions like house arrest and be allowed to appear in New York on his own.
“We may ask the judge in New York to stay the removal order, but Art would have to (eventually) go to New York anyway,” Foster said.
Nadel disappeared Jan. 14 and resurfaced about two weeks later when he turned himself in to FBI authorities in Tampa.
The fund manager is accused of inflating returns for the hedge funds he managed and bilking investors out of hundreds of millions of dollars.
In his order denying bond, Pizzo said the contrast between what Nadel has told investigators he has in assets and what the government says he took “is too stark.”
Nadel told pre-trial services that he was employed the past 14 years as a stock broker with an “unknown salary,” but authorities discovered a 500-acre development in North Carolina, two private jets and more than $1 million diverted from hedge funds to his accounts or cash, Pizzo wrote.
Nadel remains at the Pinellas County jail. Foster said his client is holding up the best he can.
“He’s not as good as he would be were he at home,” Foster said. “He’s got health issues and he’s never really been in jail before. He’s 76 years old and he has some heart issues and some other issues.”
Foster said his client is not intentionally withholding information about his assets, though he still has Fifth Amendment rights and can refuse to answer questions from authorities with the Securities and Exchange Commission.
“He is cooperating with the SEC and intends to cooperate with the SEC,” Foster said.
There was no timeframe for Nadel to be moved to New York, he said.
Nadel is remorseful over the crimes he’s been accused of, Foster said.
“Of course he’s remorseful,” Foster said.
“That’s why he’s going to cooperate with the SEC to help people try to get some money back.”