Great frauds in history: Arthur Nadel’s day-trading scam

When failed lawyer Arthur Nadel's hedge fund collapsed, it claimed to have $350m in assets. But it had just $500,000 in the bank.

Arthur Nadel was born in New York on New Year’s Day in 1933. He went on to graduate from New York University (NYU), followed by NYU Law School. His law career came to an ignominious end when he was disbarred in 1982 for misappropriating money held in an escrow account (though the money was eventually repaid). Nadel then moved to Sarasota, Florida, trying out various business ventures, interspersed with stints as a piano player. In the 1990s he and his fifth wife, Peg, founded a successful day-trading club. On the back of this success he launched a hedge fund, Scoop Management Company, which managed money for three funds run by Neil and Chris Moody.

What was the scam?

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri