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Crazy Eddie Again a Fugitive After Appellate Court Ruling

February 21, 1990

NEWARK, N.J. (AP) _ Crazy Eddie founder Eddie Antar is wanted for the second time by federal marshals in connection with an order to turn over $52 million in overseas funds, officials said Wednesday.

The arrest warrant was issued by U.S. Magistrate Ronald J. Hedges after the reclusive millionaire founder of the discount electronics chain failed to appear at a court hearing Tuesday.

″He’s a wanted fugitive. We have a lot of addresses, but we don’t know where he is,″ U.S. Marshal Arthur Borinsky said.

Antar, who is under investigation by the Securities and Exchange Commission, had been ordered by U.S. District Judge Nicholas Politan to turn over $52 million the SEC alleges was obtained in insider trading.

The SEC has been pursuing a civil securities fraud case against Antar and three other former officers of the 43-store empire, which collapsed last year.

On Feb. 9, Politan issued an arrest warrant on civil contempt charges after Antar failed to show up at a hearing to explain why he did not obey the order to return the money.

Antar appealed Politan’s order to the 3rd U.S. Circuit Court of Appeals and surrendered voluntarily on Feb. 13 to the U.S. marshal in Newark.

His attorney, Jack Arseneault, has argued that to return the money would be self-incriminating because it would be tantamount to an admission that the money is there. Politan has rejected that argument.

Last Friday, the appellate court in Philadelphia also struck down the argument, clearing the way for civil contempt proceedings if Antar fails to turn over the money.

Hedges issued the arrest warrant after Antar’s lawyers explained that their client was unavailable, court officials said. Antar’s lawyers did not immediately return telephone calls to their office on Wednesday.

Update hourly