From the Wires
Wiand Guerra King Announces Second Distribution to Victims in Nadel Receivership
By: PR Newswire
Nov. 16, 2012 04:59 PM
TAMPA, Fla., Nov. 16, 2012 /PRNewswire/ -- The law firm of Wiand Guerra King is pleased to announce on behalf of Receiver, Burton W. Wiand, that the Honorable Richard A. Lazzara, United States District Judge, of the District Court for the Middle District of Florida today entered an Order approving a Motion made by the Receiver authorizing the distribution of additional proceeds from the Receivership estate to investor victims of the Arthur Nadel Ponzi scheme. Mr. Wiand was appointed Receiver with respect to this massive fraud at the suggestion of the Securities and Exchange Commission and since January of 2009 has been engaged in efforts to secure and liquidate assets and collect funds for the benefit of defrauded investors and other creditors. Starting with only approximately $600,000 in receivership accounts in January of 2009, the efforts of Mr. Wiand and his attorneys, accountants, and others have resulted in recoveries for the Receivership estate to date in excess of $60 million. The Order entered by Judge Lazzara authorizes the distribution of $22 million that will result in a return to date to defrauded investors of over 36% of their approved claims. The Receivership continues to hold over $11 million for continued expenses of the receivership and as reserves for certain disputed claims.
The funds that have been collected for distribution to date have been gathered from settlement of clawback lawsuits, claims against financial institutions that worked with Arthur Nadel, and recovery and liquidation of assets that had been acquired by Arthur Nadel, his wife and others who worked with Arthur Nadel's fraudulent scheme. Recently the Receiver resolved a lawsuit against Holland & Knight LLP in the amount of $25 million resulting in a net recovery for the Receivership of over $18.6 million. Mr. Wiand still has clawback claims pending against individuals and entities who received profits from the Ponzi scheme or who unfairly benefited from distributions made by Nadel. A significant lawsuit is also pending against Wells Fargo Bank, an institution that provided banking services to Nadel. Additional funds are being recovered from the U.S. Treasury Department by Mr. Wiand's team through the filing of amended income tax returns on behalf of participants in Nadel's scheme who paid taxes on non-existent income. Mr. Wiand stated that "the Holland & Knight settlement has added significant sums for distribution to Nadel's victims. There is more work to be done and I hope our successes for Nadel's victims continue."
The team of lawyers, accountants, and other professionals who are working for the Receiver will continue vigorous efforts to secure funds owed to the Receivership estate in order to return to investor-victims and creditors as much of what they have lost as possible. Mr. Wiand further stated "as further recoveries are made, objections are resolved and reserves released I will make additional distributions as promptly as is practical."
For further information, contact Jordan Maglich at Wiand Guerra King P.L. at 813.347.5100 or firstname.lastname@example.org.
Wiand Guerra King P.L.
SOURCE Wiand Guerra King P.L.
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