Email your news and story ideas to: [email protected]
Firm shells out $25m for Ponzi settlement
International law firm Holland & Knight has agreed to pay £25 million to settle a claim from investors who lost money through convicted Ponzi scheme runner Arthur Nadal.
Anyone for a flutter on the Ponzi?
Sign up for our free daily newsletter
YOUR PRIVACY - PLEASE READ CAREFULLY DATA PROTECTION STATEMENT
Below we explain how we will communicate with you. We set out how we use your data in our Privacy Policy.
Global City Media, and its associated brands will use the lawful basis of legitimate interests to use
the
contact details you have supplied to contact you regarding our publications, events, training,
reader
research, and other relevant information. We will always give you the option to opt out of our
marketing.
By clicking submit, you confirm that you understand and accept the Terms & Conditions and Privacy Policy
The decentralised firm -- which has origins in Florida -- did not admit wrongdoing, but in a statement general counsel Michael Chapman said: ‘The settlement represents a compromise by the firm that reflects its consideration of various factors, including the substantial costs and investment of firm resources required to continue the litigation involving the funds.’
Fraudulent scheme
The ABA Journal reports that the settlement provides the largest source of money to those defrauded by the scheme, which saw Nadel – who died in prison in April – rake in $162m.
According to reports, the firm earned less than $500,000 for the work it carried out of behalf of Nadel. However, the receiver’s suit claimed the firm failed to notice that Nadel – a former lawyer – had been disbarred for taking client money out of trust accounts. The firm was also accused of failing to discover the fraudulent scheme.
