Welcome to Florida, Can I Interest You in a Shady Hedge Fund?
Riptide is not much of an economist, then again who is these days? But, if I'm following the logic correctly, the reason we have so many tax cuts and loopholes for the über-rich is because theoretically they're supposed to inject their extra money directly back into the economy and create jobs and the like. Well, apparently instead of that, they seem to have developed a habit of letting their money disappear in Ponzi schemes and other wacky investment schemes, especially in Florida.
Hot of the heels of the Madoff scandal that rocked the world, and more directly West Palm Beach comes the Gulf Coast's version: the Art Nadel scandal.
Nadel lived the high life in sunny Sarasota, and managed six shady hedgefunds that apparently were worth as much as $350 million. 76-year-old Nadel is missing at the moment, possibly planning to commit suicide, and much of the worth of the hedge funds are also M.I.A. Details are sketchy, but some investors may have lost up to $700,000. Local nonprofits which had either invested with Nadel or relied on him for donations are also devastated. The local YMCA, for example, lost approximately 13% of its total assets. Authorities aren't crying "ponzi" just yet, but no one seems to know where the money went or, for that matter, where Nadel himself is.
[via The Herald Tribune]