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Tampa Bay-Lakeland
Business Observer Thursday, Dec. 15, 2011 10 years ago

Nadel victims get $10M from GS

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Goldman Sachs offers settlement to victims of Art Nadel's Ponzi scheme.

TAMPA -- Goldman Sachs Execution & Clearing LP, part of The Goldman Sachs Group Inc. (symbol: GS), offered a $9.85 million settlement to the victims of the Ponzi scheme perpetrated by Arthur Nadel.

Nadel was sentenced to 14 years in prison last October for causing $162 million in damage to hundreds of Floridians.

The receiver in the Nadel case is Burton Wiand, of Wiand Guerra King PL. In response to Goldman Sachs' offer, Wiand has contacted the investors defrauded by Nadel seeking approval of the settlement.

If the currently discussed settlement is approved, Wiand will ask the court to bar further claims against Goldman Sachs, as part of the agreement.

Goldman Sachs “has maintained that it acted appropriately” throughout the receivership process, Wiand says in a release issued by his law practice, but at the same time has indicated “a good-faith willingness to resolve these matters amicably” from the beginning.

“GSEC's payment of $9,850,000 under the settlement is an amount that is larger than the fees GSEC received from the securities transactions underlying these matters,” Wiand says in the statement, “and it represents a very significant benefit for the receivership estate and defrauded investors.”

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