U.S. SECURITIES AND EXCHANGE COMMISSIONLitigation Release No. 21775 / December 13, 2010JUDGMENT OF PERMANENT INJUNCTION AND OTHER RELIEF ENTERED AGAINST DEFENDANT ARTHUR NADELSecurities and Exchange Commission v. Arthur Nadel, et al., Civil Action No. 8:09-cv-87-T-26TBM (M.D. Fla.)The Commission announced that on August 18, 2010, the United States District Court for the Middle District of Florida entered a Judgment of Permanent Injunction and Other Relief against Defendant Arthur Nadel. The Judgment, entered by consent, enjoins Nadel from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The Court also ordered Nadel to pay disgorgement and a civil penalty in amounts to be determined by the Court upon motion by the Commission. The Commission began this action by filing its complaint on January 21, 2010, charging Nadel with fraud in connection with six hedge funds for which he acted as the principal investment advisor. According to the complaint, Nadel provided false and misleading information for dissemination to investors about the funds' historical returns and falsely overstated the value of investments in the funds by approximately $300 million. For additional information, see Litigation Release No. 20858 (January 21, 2010).
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