If you have solid tips, news or documents on potential ethical violations or abuses of power, we want to know. Send us your suggestions. 
Unfortunately I believe that we are limited in what we can focus on. I think that if we proceed with the partisan sideshow of prosecuting Bush admin. officials, healthcare will get lost in the brouhaha.
The Washington Post's permanent investigative unit was set up in 1982 under Bob Woodward.
A $350 Million Hole in a Hedge Fund
Arthur G. Nadel didn't look or act like Bernard Madoff, the once-heralded Wall Street titan who authorities say is behind a $50 billion Ponzi scheme.
Unlike Madoff, Nadel, a 76-year-old Sarasota, Fla., hedge fund manager, didn't drive fancy cars or own homes around the globe. Rather, Nadel and his wife lived in a modest, $250,000 ranch-style home in Florida and Arthur Nadel drove a light-green Subaru.
But much like Madoff, Nadel handled large sums of money for wealthy investors and was generous, frequently donating to charity, such as Habitat for Humanity.
Nadel, who was charged today with fraud, disappeared on Jan. 14, a day before he was supposed to make good on a pledge to deliver $50 million to angry investors. In a suicide note he left at home, Nadel described "extreme guilt he was feeling over business actions that he had taken which resulted in the loss of other people's money," a Sarasota County sheriff's deputy wrote in a report obtained by the Sarasota Herald Tribune.
Those who knew Nadel said he was essentially a day trader, dealing with leveraged derivatives, such as the one based on the NASDAQ 100 stock market index.
The FBI is investigating (the Herald Tribune reports that authorities have tracked him to Slidell, La.).
The U.S. Securities and Exchange Commission said Nadel misled investors and overstated the value of investments in six hedge funds by about $300 million. Regulators also contend that Nadel transferred at least $1.25 million from two of the hedge funds to secret bank accounts he controlled.
The Nadel case is only the latest of what many observers believe will be multiple frauds and mismanagement laid bare by the breakdown of the financial system. Regulators are promising that schemers will face a new level of scrutiny. (See: How to Avoid Getting Burned by the Next Bernard Madoff)
"Ponzi schemers succeed by creating an illusion of profitability through lies and deceit," said Stephen J. Obie, acting enforcement director of the Commodities Futures Trading Commission. "We are committed to rooting out miscreants who undermine the confidence of investors everywhere."
By Derek Kravitz |
January 21, 2009; 4:42 PM ET
Previous: The Trials of Guantanamo Bay |
Next: Obama Orders Could Open Records
Posted by: Garak | January 21, 2009 5:37 PM
What delicious naivety on the the part of this 'hard-nosed'journalist in suggesting that because he didn't display the vulgar panoply of wealth of Madoff that somehow it was deemed inconceivable that Nadel could have committed similar acts of fraud and theft. Hitler certainly didn't give the appearance of someone who could be responsible for causing the death of millions in the concentration camps & yet he did. If one learns nothing from history one is condemned to repeat the similar errors of judgement.
PS Could we please have journalists who are capable of making mature statements ?
Posted by: tonyharding | January 21, 2009 7:08 PM
FOR A WALL STREET CLEAN-UP, LEARN FROM BERNIE MADOFF
What if a letter written by Bernie Madoff explaining himself was discovered?
--
http://pacificgatepost.blogspot.com/2009/01/bernie-madoff-letter-of-explanation.html
-
….in his own words?
Posted by: JamesRaider | January 21, 2009 8:39 PM
This is getting ridiculous. I am taking my money out of everywhere and hording cash. There will be more..maybe even one bigger than Madoff..maybe the social security system....... in researching more about hedge funds I came across a few books that were fascinating ..honest, and informative…..Hedge Fund Trading Secrets Revealed by Robert Dorfman... and Confessions of a Street Addict by Jim Cramer....both these books take you on a great ride about hedge funds and how they make money. I learned about this secret society than I ever would have imagined. Dorfman actually teaches traders his strategies. Now i know for sure why its hard to make money in the markets. They aren't designed for the little guy to win
Posted by: miltthestilt | January 22, 2009 1:05 PM
Post a Comment
We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.
User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.
Nadel was disbarred in NY in 1982. I wonder who missed that on due diligence.