Securities and Exchange Commission v. Nadel et al

Filing 769

NOTICE by Securities and Exchange Commission (Attachments: #1 Motion to Vacate, #2 Exhibit A, #3 Exhibit B, #4 Exhibit C)(Cream, Anita)

Case 1:09-cr-00433-JGK Document 95-3

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
- - - - - - - - - - - - - - - - x
:
UNITED STATES OF AMERICA
:
-v.:
ARTHUR NADEL,
:
Defendant.
:
- - - - - - - - - - - - - - - - x

Filed 02/29/12 Page 1 of 6

STIPULATION AND ORDER
09 Cr. 433(JGK)

WHEREAS, on or about April 28, 2009, ARTHUR NADEL, (the
“defendant”), was charged in a fifteen-count Indictment 09 Cr.
433 (JGK) (the “Indictment”), with, securities fraud, in
violation of Title 15, United States Code, Sections 78j(b) &
78ff, Title 17, Code of Federal Regulations, Section 240.10b-5,
and Title 18, United States Code, Section 2 (Counts One through
Six); mail fraud in violation of Title 18, United States Code,
Sections 1341 and 2 (Count Seven); and wire fraud in violation
of Title 18, United States Code, Sections 1343 and 2 (Counts
Eight through Fifteen);
WHEREAS, the Indictment includes forfeiture
allegations, providing notice that the Government is seeking,
pursuant to Title 18, United States Code, Section 981(a)(1)(C)
and Title 28, United States Code, Section 2461, all property,
real and personal, that constitutes or is derived from proceeds
traceable to the commission of the fraud offenses, including,
but not limited to, the following:

Case 1:09-cr-00433-JGK Document 95-3

a.

b.

c.

d.
e.

f.

g.

h.

i.

j.

k.

Filed 02/29/12 Page 2 of 6

At least approximately $360 million in United States
currency, in that such sum in aggregate is property
representing the amount of proceeds obtained as a
result of the charged securities fraud, mail fraud,
and wire fraud offenses;
Any and all funds on deposit in Account No. 2840109316
held in the name of Marguerite J. Nadel Revocable
Trust at Northern Trust, N.A.;
The real property and appurtenances known and
described as 3966 Country View Drive, Sarasota,
Florida;
The real property and appurtenances known and
described as 15576 Fruitville Road, Sarasota, Florida;
The real property and appurtenances known and
described 131 Garren Creek Road, Fairview, North
Carolina;
The real property and appurtenances known and
described as approximately acres and forty-five lots
in the name of Scoop Capital, LLC, in Thomasville,
Georgia;
The real property and appurtenances known and
described as approximately thirty-seven acres in the
name of Scoop Capital, LLC, in Grady County, Georgia;
All right, title, and interest in the entity known and
described as the Venice Jet Center located in Venice,
Florida;
All right, title, and interest in the entities known
and described as Laurel Mountain Preserve, LLC, Laurel
Preserve, LLC, and Laurel Mountain Preserve Homeowners
Association, Inc., including, but not limited to, 420
acres in Buncombe County and McDowell County, North
Carolina;
All right, title, and interest in the entity known and
described as Tradewind, LLC, including, but not
limited to, five airplanes, one helicopter, and
thirty-one airport hangars, located in Newnan-Coweta
County Airport, Georgia; and
All right, title, and interest in the entity known
and described as the Guy-Nadel Foundation, Inc.;
WHEREAS, on or about February 24, 2010, the defendant

pled guilty to Counts One through Fifteen of the Indictment
pursuant to an agreement with the Government (“the Agreement”);

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Case 1:09-cr-00433-JGK Document 95-3

Filed 02/29/12 Page 3 of 6

WHEREAS, in the Agreement, the defendant agreed to
forfeit to the Government a sum of money equal to $162,000,000
in United States Currency (the “Money Judgment”), and all of his
right, title and interest in the following properties:
A.

Any and all funds on deposit in Account No. 2840109316
held in the name of Marguerite J. Nadel Revocable
Trust at Northern Trust, N.A.;

B.

The real property and appurtenances known and
described as 15576 Fruitville Road, Sarasota, Florida;

C.

The real property and appurtenances known and
described as 131 Garren Creek Road, Fairview, North
Carolina;

D.

The real property and appurtenances known and
described as approximately fourteen acres and fortyfive lots in the name of Scoop Capital, LLC, in
Thomasville, Georgia;

E.

The real property and appurtenances known and
described as approximately thirty-seven acres in the
name of Scoop Capital, LLC, in Grady County, Georgia;

F.

All right, title, and interest in the entity known and
described as the Venice Jet Center located in Venice,
Florida;

G.

All right, title, and interest in the entities known
and described as Laurel Mountain Preserve, LLC, Laurel
Preserve, LLC, and Laurel Mountain Preserve Homeowners
Association, Inc., including, but not limited to, 420
acres in Buncombe County and McDowell County, North
Carolina;

H.

All right, title, and interest in the entity known and
described as Tradewind, LLC, including, but not
limited to, five airplanes, one helicopter, and
thirty-one airport hangars, located in Newnan-Coweta
County Airport, Georgia; and

3

Case 1:09-cr-00433-JGK Document 95-3

I.

Filed 02/29/12 Page 4 of 6

All right, title, and interest in the entity known and
described as the Guy-Nadel Foundation, Inc.

(hereinafter the “Specific Properties”);
WHEREAS, on or about October 21, 2010, the defendant
was sentenced and ordered to forfeit his interest in the
Specific Properties and to the Money Judgment;
WHEREAS, in an order dated October 21, 2010, the Court
entered a Preliminary Order of Forfeiture/Final Order of
Forfeiture as to Defendant’s Interest in Specific Property,
which entered the Money Judgment against the defendant and
forfeited all of the defendant’s right, title and interest in
the Specific Properties;
WHEREAS, on June 24, 2011, Wells Fargo Bank, N.A.
(“Wells Fargo” or “Petitioner”) filed its Verified Petition
pursuant to 21 U.S.C. § 853(n)(2), and Fed. R. Crim. P. 32.2(c),
seeking a hearing to adjudicate its interest in the Laurel
Mountain Preserve Property, which petition was amended on July
2, 2011;
WHEREAS, on February 12, 2012, this Court entered a
Stipulation and Order vacating the Preliminary Order of
Forfeiture as to the Laurel Mountain Preserve Property;
WHEREAS, other than Wells Fargo’s Verified Petition,
no other forfeiture petition has been filed in this action and
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Case 1:09-cr-00433-JGK Document 95-3

Filed 02/29/12 Page 5 of 6

no person has otherwise filed any submission in this action
asserting a legal interest in any of the Specific Properties;
WHEREAS, the Government has applied to the Court for
an order vacating the Preliminary Order of Forfeiture as to the
Specific Properties on the grounds that this would enable the
distribution of proceeds of Nadel’s criminal activity by the
Receiver appointed in Securities and Exchange Commission v.
Nadel, 09-cv-87-T-26TBM (M.D. Fla.) to Nadel’s victims;
NOW, THEREFORE, IT IS HEREBY ORDERED that:
1.

The Preliminary Order of Forfeiture/Final Order

of Forfeiture as to Defendant’s Interest in Specific Property is
vacated as to the Specific Properties.

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Case 1:09-cr-00433-JGK Document 95-3

2.

Filed 02/29/12 Page 6 of 6

The Court shall have exclusive jurisdiction over

the interpretation and enforcement of this Order.

SO ORDERED:

_____________________
DATE

____________________________
HONORABLE JOHN G. KOELTL
UNITED STATES DISTRICT JUDGE

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