TAMPA, Fla., April 3, 2012 (GLOBE NEWSWIRE) -- Burton W. Wiand, who was appointed Receiver in S.E.C. v. Arthur Nadel et al., Case No. 8:09-cv-87-T-26TBM (M.D. Fla.), over various entities associated with Arthur Nadel's Ponzi scheme, announced today that he has reached a settlement with Shoreline Trading Group, LLC ("Shoreline"). Shoreline was the primary firm that provided brokerage services to Nadel and certain of the entities associated with his scheme. Under the terms of the settlement, which must be approved by the U.S. District Court for the Middle District of Florida, Shoreline will pay $2,500,000 to the receivership estate in exchange for a broad release of claims.
Also as part of the settlement, in the motion for its approval the Receiver asked the Court to bar claims against Shoreline. However, before any such bar is ordered by the Court, the Receiver will send notice of the settlement and the request for a bar to investors in Nadel's scheme and other interested parties. The notice will inform recipients that, should they desire to file any response to the Receiver's motion for approval of the settlement, they may do so by filing it with the Court on or before May 3, 2012. A copy of the settlement agreement, the motion for approval, and the notice is available on the receivership's website, www.nadelreceivership.com.
Mr. Wiand's investigation of these matters revealed information indicating that Shoreline may have failed to appropriately respond to certain "red flags" that, if investigated, could have revealed fraud. Although Shoreline has maintained that it acted appropriately, from the beginning it has cooperated with Mr. Wiand and has displayed a good-faith willingness to resolve these matters amicably.
For the reasons explained in Mr. Wiand's submissions to the Court, including the possible value of recoverable damages, the costs and risks of litigation, and possible defenses, he believes the resolution reached with Shoreline is in the best interests of the receivership. Mr. Wiand stated, "Shoreline's payment of $2,500,000 under the settlement is an amount that is larger than the total net capital of Shoreline, and it represents a very significant benefit for the receivership estate and defrauded investors."
Mr. Wiand is represented in these matters by Peter B. King, Gianluca Morello, Michael Lamont, and Jared Perez of Wiand Guerra King P.L. in Tampa, Florida. For further information, contact Gianluca Morello at Wiand Guerra King P.L., 813.347.5100 or gmorello@wiandlaw.com.