Feds Call Missing Fund Manager a Fraudster

Regulators charge missing businessman with fraud

Wednesday, Jan 21, 2009  |  Updated 3:16 PM CDT
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Bernard Madoff & His Victims

Kiselev Andrey Valerevich

Federal regulators charged Florida money manager Arthur Nadel with fraud after he disappeared –– and investors are wondering where hundreds of millions of dollars went.

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The Feds aren't buying Arthur Nadel's purported suicide note that he instructed his son-in-law to discover after disappearing with more than $300 million of investors' money.

Federal regulators are charging the missing hedge fund manager with fraud, saying he misled investors and overstated the value of investments in the six funds by about $300 million.

The Securities and Exchange Commission obtained a court order Wednesday  to freeze the assets of Nadel and other defendants in the case.

Nadel, 76, of Sarasota, Fla., owed investors a $50 million payout, told his wife in a note he felt guilty and threatened to kill himself, according to the Sarasota County Sheriff's Office. Authorities believe that Nadel planned his Jan. 14 disappearance.

The SEC said Nadel recently transferred at least $1.25 million from two of his hedge funds to secret bank accounts that he controlled.

Nadel is just the most recent of failed, crooked, or pathetically inept money managers to make a run for it by insinuating his suicide.

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