Every day that passes without authorities finding Arthur Nadel makes me think of Homer Forster, a fraudster we pursued in my days at the U.S. Securities and Exchange Commission. Forster redeemed customers’ variable annuity contracts without their knowledge or consent and took the money (just over $1.6 million) for himself. He had been planning his escape for quite sometime, and managed to leave the country before the criminal authorities could track him down. He and his girlfriend had applied for and received U.S. Passports under assumed names, and used them to flee the States.
It is unusual for a scam artist to remain on the lam for very long, but Forster proved the exception. He lived abroad for ten years. The $1.6 million was not enough to fund his lifestyle, apparently, as news reports indicate that he was arrested in Dubai in connection with a separate scam. He was extradited back to the United States and is now serving a 51-month prison sentence for the original crime.
The affidavit supporting the request for extradition details Forster’s conduct in the days after the scam - fleeing first to Canada and later to Spain, making sure that the money he stole followed him to a bank in Luxemborg - and gives some insight into how a determined scam artist can be in escaping judgment for their crimes. Think of it this way - if they are bold enough to steal your life savings, are they bold enough to try to get away with it so that they can spend the money? Of course.
All of Forster’s clients would have told you that they never believed him capable of the theft. Would you say the same about your broker or investment adviser? Your broker could be the next Madoff, Nadel, or Forster. If he is trustworthy, he will not mind you checking up on him (indeed, will never know you have done so unless you tell him). If not, investigating your broker is essential to helping you keep what you have worked so hard to save.
[...] This character showed up on our radar first when he teamed up with Tom McMurrain’s San Cristobal scam where he attempted to launder millions of dollars - the proceeds of an elaborate swindle in the Netherlands - through the noni and teak scheme. When that failed he tried to do the same by preparing for a series of fake pay-per-view rock concerts, involving UNICEF in the process, and opening bank accounts in Dubai to deposit the stolen money. He got arrested, released, and arrested again in Spain. The Spaniards shipped him to the USA where he still had to serve a prison sentence for an earlier swindle - he stole a couple of millions from clients of his financial company. See here. And here. [...]
I find the article interesting after all these years. I was a RR under Homer Forster’s supervision. I was at his and his girlfriends home and office on many occasions. After the fact I could se what had been happening but, not until he was gone.
To my surprise no one ever contacted me or some of his other associates about where he may have gone. We had valuable information but no one asked.
Thanks for the post, Burl. My recollection is that Homer changed his appearance somewhat, began dressing in a younger style. and began wearing an earring shortly before he left town. What do you remember about the days before he disappeared?
Peace,
Pat