January 18, 2009 in Nation/World

Fund chief missing; fraud claims swirl

By SUZETTE LABOY Associated Press
 
Sarasota Tribune photo

Nadel
(Full-size photo)

MIAMI – A Florida hedge fund manager accused of defrauding investors of millions is missing and his family is worried because he left a note indicating he was “distraught,” police said Saturday.

Authorities were interviewing investors and looking into claims that Arthur G. Nadel stole from them, said Sarasota police Capt. Bill Spitler. It was too soon to say exactly how much was invested, but there were reports the hedge fund could be out $350 million.

Nadel, who operated under the name Scoop Management Inc. in Sarasota, was last seen Wednesday morning by his wife. She reported him missing later that day. Nadel, 75, left a note for his family, but neither authorities nor his wife would divulge its contents.

“The reason we were called was because he was distraught and they became concerned,” said Sarasota County Sheriff’s Office spokesman Lt. Chuck Lesaltato.

Peg Nadel said she was cooperating with the authorities and all the investors, but wouldn’t go into any detail.

Local authorities were working with the Securities and Exchange Commission and FBI in the ongoing fraud investigation.

© Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Thoughts and opinions on this story? Click here to comment >>

Get stories like this in a free daily email