Goldman Sachs To Pay $10 Million To Settle Nadel-Related Claims
By John Hielscher
Giant investment bank Goldman Sachs Group Inc. will pay nearly $10 million to settle claims over its handling of hedge-fund trading in the Arthur Nadel Ponzi scheme.
The settlement, by far the single largest recovery of money for the Nadel receivership, could set the stage for other deep-pocketed companies to resolve threatened litigation in the case.
Prominent law firm Holland & Knight, lender Wells Fargo and Shoreline Trading Group, all of whom were involved with Nadel’s Scoop Management Inc., also have either been served or threatened with legal action by the case’s receiver. For its part, Shoreline pocketed the bulk of more than $13 million in fees from the Nadel funds.