Law firm to pay nearly $1M to receiver to settle claim it helped client conceal assets
Posted Nov 27, 2013 06:05 pm CST
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.
ABAJournal.com: “Lawyer-Turned-Money Manager Pleads Guilty in Alleged $397M Ponzi Scheme”
ABAJournal.com: “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”