Arthur Nadel - Investor Losses

Investor Losses

More than 371 investors invested $397 million. Investors' out-of-pocket losses are estimated at $168.7 million.

Neil V. Moody, 70 told the Associated Press that his immediate family has lost $12 million due to Nadel. Moody, one of Nadel's business partners, suggests the $350 million figure may be inflated due to Nadel's own overstating of his fund's success.

Dennis Raefield, president and chief executive of Mace Security International Inc., based in Horsham, Pennsylvania, claims that Nadel's Victory Fund failed to pay $2.2 million as promised, the day after Nadel vanished on January 15, 2009. Raefield said he asked Nadel in June 2008 to redeem Mace's entire $3.2 million investment in the short-term hedge fund, Victory. The money was to be paid by October 10, 2008, or 10 business days after the close of the third quarter. On October 15, fund managers asserted their right to withhold the payout "due to extraordinary market circumstances". After negotiations, the fund agreed to pay the money in two installments. Mace received only one payment of $1 million on November 5.

Louis Paolino, Jr., former executive officer of Mace Security lost more than $5.8 million of personal funds in the Viking Fund LLC. His lawsuit claims that the Moodys took fraudulently obtained money from investors in Scoop’s funds and bought homes with part of the proceeds.

David Walters of Ocala, Florida lost most of his pension from Bethlehem Steel, more than $670,000.

Michael Sullivan, a neighbor of Nadel's, an 80-year-old attorney, invested $15 million.

Sullivan, an Illinois entrepreneur recommended by his neighbor, put $250,000 into Nadel's Scoop Management three years ago, and an additional $1.4 million shortly before Nadel vanished.

Dr. Brad Lerner, Sarasota, invested $500,000.

Drew Clayton, Sarasota