Tuesday, January 20, 2009

More Hedge Fund Drama: Authur Nadel, Fund Manager, Goes Missing.

Authur G. Nadel, a Florida hedge fund manager, went missing on January 14th, and a story of fraud and lost fortunes unfolded:

Mace Loses $2 Million in Nadel Hedge Fund; FBI Takes Over Probe
"Mace Security International Inc., the maker of Mace self-defense sprays, said it lost $2.2 million in a hedge fund run by Arthur Nadel, the Sarasota, Florida, investor being sought by the FBI after disappearing last week."

FBI and SEC Probe Missing Fund Manager (Bloomberg News, New York Times, 1/18/09)
The F.B.I. and securities regulators have joined the investigation of Arthur Nadel, a Florida hedge fund manager who disappeared four days ago, leaving clients concerned that they might have lost as much as $350 million."

FBI joins search for missing Florida money manager
(Michael Peltier, Reuters, 1/18/09)
"Nadel and his wife Peg were prominent philanthropists and socialites in Sarasota, an upscale community south of Tampa, Florida. The couple was involved in many community organizations including Habitat for Humanity."

In Nadel Case, Warning Signals (John Hielscher, Anthony Cormier & Michael Pollick, Herald Tribune, 1/20/09)
"Two sources who have seen or been briefed on the note indicated Nadel told family members that he made a grave mistake and planned to kill himself. Once he spoke with family members by phone, however, the suicide fears dissipated and FBI agents began hunting him as a missing person"

Authorities think money manager planned to vanish
(Christine Armario, Associated Press)
"... Later, Nadel called and said he'd left something for her in a desk drawer at their ranch-style home in Sarasota. That's where she found a suicide note, the sheriff's report states. In it, Nadel told his wife how much he loved her. He also said he felt guilty over losing other people's money....Nadel operated Scoop Management Inc., and was a trader for six different funds. According to Scoop's internal accountant, there are between 500 and 600 investors across the country. Last week, many were told that the funds are empty."

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