Trials & Litigation

Law firm to pay nearly $1M to receiver to settle claim it helped client conceal assets

Add another law firm to the list of those that have helped fund a receivership winding up the business affairs of disbarred attorney Arthur Nadel.

Without admitting liability, Florida’s Band Weintraub has agreed to pay nearly $1 million in settlement of a lawsuit by the receiver that alleged the firm participated in a conspiracy to conceal a client’s assets. That client, investment newsletter publisher Donald Rowe, had been ordered by a federal court in Tampa in February to pay $4 million to the receivership, the Sarasota Herald-Tribune reports.

Band Weintraub must now pay $943,527 to the receiver before the end of the year. The attorney who represented Rowe and his wife has left the firm and formed a new practice.

The Tampa Bay Business Journal also has a story.

Nadel died in prison last year. He had been serving a 14-year prison term after taking a plea in 2010 in a securities-fraud case in which authorities say Nadel netted more than $397 million from investors and stole $168 million of it to fund his lifestyle.

See also: “Lawyer-Turned-Money Manager Pleads Guilty in Alleged $397M Ponzi Scheme” “BigLaw Firm to Pay $25M to Settle Litigation over Its Representation of Convicted Ponzi Schemer”

Wall Street Journal Law Blog (sub. req.): “‘Mini Madoff’ Arthur Nadel Dies At Age Of 80”

We welcome your comments, but please adhere to our comment policy and the ABA Code of Conduct.

Commenting is not available in this channel entry.