The company that makes the Mace defense spray says it has lost $2.2 million in the Sarasota hedge funds operated by Arthur G. Nadel. Mace Security Company said The Victory Fund failed to pay the money on Jan. 15 as expected.
The $2.2 million is the largest amount of money any investor has publicly acknowledged losing in the funds operated by the missing Art Nadel.
Mace, based in Horsham, Pa., said it received $1 million from the Victory Fund in November. “We have already filed a report with the authorities, and we intend to take all possible legal action against the Victory Fund,” said Dennis Raefield, Mace’s president and CEO. Sarasota Police Department has turned over its investigation of Mr. Nadel's company, Scoop Management, to the Federal Bureau of Investigation. Any person wishing to make a report regarding Scoop Management is requested to do so by emailing the FBI at email@example.com.
UPDATE....Wednesday, January 21, 2009, Missing Investor kept N.Y. Disbarment a Secret, Sarasota's Art Nadel Paid $50,000 to Mob Loan Sharks From Clients Escrow Account
HORSHAM, Pa.--(BUSINESS WIRE)--Mace Security International, Inc. ("Mace", “Corporation” or the “Company”) (Nasdaq Global:MACE) today announced the status of its investment with The Victory Fund, Ltd. (“The Victory Fund”), a short term hedge fund investment made by the company.The Victory Fund did not pay the $2,206,748 amount that was due to be paid on January 15, 2009.
On November 5, 2008, Mace received $1,000,000 of its original investment from the Victory Fund. The original amount invested in the Victory Fund was $2,000,000.
From Florida Division Corp records, Victory Fund is owned by Scoop Capital LLC and Arthur Nadel, click here., the initial set up name for the Victory Fund was Intex Trading Corporation. INTEX TRADING CORPORATION at 1618 MAIN STREET SARASOTA FL 34236 shut down, on paper, in 2005, click here for records.
“We have already filed a report with the authorities, and we intend to take all possible legal action against the Victory Fund,” said Dennis Raefield, Mace’s CEO and President.
“Mace continues to have a solid balance sheet, cash in the bank and strong business fundamentals.”
On January 15, 2009, during a telephone conversation between the Corporation’s General Counsel and a representative of the hedge fund, the representative of the hedge fund stated that:
(a) the deposits and other investments of the hedge funds managed by Arthur Nadel, including the Victory Fund, cannot be located.
(b) documents previously provided to the representative by Mr. Nadel have proven not to be authentic;
(c) the representative had reported the above events to the Securities and Exchange Commission and the authorities in the State of Florida. The Company is in the process of verifying the statements of the Victory hedge fund representative.
As previously disclosed, in the Company’s Form 10-Q for the quarter ended September 30, 2008, Mace requested redemption of the Victory Fund, Ltd., hedge fund investment, on June 18, 2008. Under the Limited Partnership Agreement with the hedge fund, the redemption request was timely for a return of the investment account balance as of September 30, 2008, payable ten business days after the end of the September 30, 2008 quarter.
The Victory hedge fund and the Mace Corporation entered into a written agreement requiring the hedge fund to pay the redemption amount in two installments, one installment of $1,000,000, which was received on November 5, 2008, and a second installment of $2,206,748, which was to be received on January 15, 2009.
The Mace Corporation will record a charge of $2,206,748 as an investment loss at December 31, 2008. If the Corporation recovers any of the investment loss, such amounts will be recorded as recoveries in future periods when received. As of December 31, 2008, Mace had approximately $8,900,000 of cash and short term investments, excluding the value of the Victory Fund investment.
About Mace; Mace Security International, Inc. is a manufacturer of personal defense and electronic surveillance products marketed under the famous brand name, Mace®. The Company also operates a Digital Media Marketing and e-commerce business. In addition, Mace owns and operates car washes, and has previously announced that it is exiting this segment of its business. The Company’s remaining car washes for sale are located in Texas.
Mace’s web site is http://www.mace.com/. Certain statements and information included in this press release constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995.
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