Wiand Guerra King Announces Distributions to Victims in Nadel Receivership
TAMPA, Fla., May 7, 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 on Mr. Wiand's behalf authorizing the initial distribution of 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. Since 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 net recoveries for the Receivership estate to date in excess of $34 million. The Order entered by Judge Lazzara authorizes the distribution of approximately $26 million that will result in an initial return to defrauded investors of 20% of their approved 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. Mr. Wiand still has clawback lawsuits pending against individuals and entities who received profits from the Ponzi scheme or who unfairly benefited from distributions made by Nadel. Significant lawsuits are also pending against Holland & Knight, the law firm that represented Nadel and his entities, and 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 profits. Mr. Wiand stated that, "this has been a long and difficult process in order to recover assets and funds from individuals and entities that benefited from Mr. Nadel's Ponzi scheme. Most of these recoveries have required litigation and substantial efforts by attorneys of Wiand Guerra King and other law firms who have assisted me in connection with gathering these assets. I am delighted to have reached the point in time when the victims of Mr. Nadel's crimes can begin to receive a return of some of the funds that they had lost." 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.
The distribution of funds and Judge Lazzara's Order was delayed for over a week by objections interposed by Wells Fargo Bank, N.A. Mr. Wiand has instituted suit against Wells Fargo and has denied many of the bank's asserted interests in proceeds of the Receivership alleging that activities of the bank facilitated and assisted Arthur Nadel in perpetration of his fraudulent Ponzi scheme. Judge Lazzara, in a separate Order today denying Wells Fargo's objection to the distribution of funds to defrauded investors ruled that the position of Wells Fargo was "totally unfounded".
For further information, contact Jordan Maglich at Wiand Guerra King P.L. at 813.347.5100 or email@example.com.
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