Hedge fund manager's scheme highlights discussion

Oct 22, 2010

Jackie Barron

Tampa Bay Online / WFLA

SARASOTA - Hedge fund manager Art Nadel, who used Sarasota-based Scoop Management to bilk 390 clients out of nearly $400 million, was sentenced to 14 years in prison Thursday.

And today Nadel's scheme was the focus of a roundtable discussion on investment fraud at Sarasota's Senior Friendship Center.

The meeting was hosted by attorney Drew Clayton, who represents about a dozen clients victimized by Nadel, state Rep. Keith Fitzgerald and state Sen. Dan Gelber, who is running for the Florida attorney general seat.

Clayton said Nadel's sentence sends the wrong message. "From my perspective it's important to let these bad guys know they're going to go away for a long time."

"We're talking about people who will never recover from this," Clayton said of the victims.

A college professor and his wife are among Clayton's clients.

"They've had to sell their home and they're moving into a two-bedroom apartment as a direct result of this fraud," Clayton said.

He also represents Larry Collier, a phone company retiree who invested his life savings of about $450,000 with Scoop.

"Yeah, I would kind of like to get some money," Collier said during an interview in March. "It brightens a person's future if you have money to live on in the future."

Nadel will serve his time at the Butner Federal Medical Facility in North Carolina. The same prison that well-known Ponzi schemer Bernard Madoff now calls home.

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