Alleged Swindler Nadel Agrees to Freezing of Assets
Hedge fund manager Arthur Nadel, arrested last week on fraud charges, has agreed to have his assets frozen.
Nadel, who was arrested last week for allegedly inflating the value of his funds by more than $300 million, then disappearing for nearly two weeks before turning himself in, agreed to a preliminary injunction freezing his assets and ordering him to return money that may be parked overseas.
Nadel, 76 years old, is being held without bail while he awaits federal prosecution in New York on charges of securities and wire fraud.
In the court order, part of the Securities and Exchange Commission's civil suit against him, Nadel does not admit wrongdoing.
Nadel also agreed to surrender his passport and not obtain additional passports.
GE Capital an Alleged Victim
General Electric is among the alleged victims of Nadel.
In court papers filed Wednesday afternoon, GE's financing arm, GE Capital, says it loaned $2.6 million to a Nadel company in 2006 so it could purchase a Lear Jet—but the loan is in default.
The company that purchased the Lear Jet is among those that have had their assets frozen.
GE is the parent company of CNBC.
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