Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook

Uproar After NC State Agent 'Fixes' Girl's Lunch Preschooler has to eat chicken nuggets instead of mom's meal »

More Crime & Courts Stories»

SEC Charges 'Mini-Madoff' With Fraud

Fugitive fund manager remains on the run as cops follow trail to La.

By Rob Quinn, Newser Staff

Posted Jan 22, 2009 9:55 AM CST

(Newser) – A Florida hedge fund manager who's been on the run for more than a week will find federal fraud charges waiting for him if and when he resurfaces, Reuters reports. Arthur Nadel transferred more than $1 million of clients' money into secret accounts before disappearing, the SEC alleges in a complaint filed yesterday, and the hedge funds he controlled, which supposedly totaled $300 million, are worth just $500,000.

Nadel and two of his Sarasota-based companies have been charged with defrauding investors and his assets have been frozen, although people close to the investigation suspect he may have transferred funds overseas. The former jazz pianist has been tracked using cell phone records to the New Orleans area, and FBI and SEC investigators are on his trail.

[Images (1)]

[Quotes (1)]

Fugitive money manager Arthur Nadel, 75, is shown in a photo provided by the Sarasota County Sheriff's Office. (Sarasota County Sheriff's Office)

« Prev« Prev | Next »Next » Slideshow

Mr. Nadel's alleged actions deceived investors, and we are seeking to hold him accountable for that. - David Nelson, director of the SEC's Miami office

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Galleon Founder Slapped With $92.8M Civil Penalty

Convicted insider trader hit with record SEC fine

(NEWSER) - Galleon Group hedge fund founder Raj Rajaratnam has broken another record. The former billionaire, who received the longest-ever prison sentence for insider trading last month, has been ordered to pay the largest-ever Securities and Exchange Commission civil penalty for insider trading, reports the New York Times . The $92.8 million penalty, combined with the fines and forfeitures ordered last month, means Rajaratnam will have to pay a total of $156.6 million. More»

Mets' Owners Won't Lose All Their Madoff Money

Judge gives partial victory to both sides in lawsuit

(NEWSER) - The New York Mets' owners may have to return some of $300 million in profits they made dealing with Bernie Madoff, but their $700 million principal is probably safe. A judge has decided that for trustee Irving Picard to pursue the Mets owners' principal investment, he must prove that they were "willfully blind" to the fraudulent nature of Madoff's enterprise, the Wall Street Journal reports. The ruling could make it harder for Picard to win back large sums from others. More»

'Amish Bernie Madoff' Busted

Ohio man accused of running $16.8m Ponzi scheme

(NEWSER) - We've had the Bernie Madoff of campaign treasurers , so now meet the Amish Madoff. A 77-year-old man in Ohio is accused of scamming thousands of investors in 29 states, mostly his fellow Amish, out of $16.8 million. Prosecutors say Monroe Beachy ran a Ponzi scheme for decades, telling investors he would invest in safe securities, but instead putting their money in riskier ones and sending them false account statements, ABC reports. Beachy, who declared bankruptcy earlier this year, faces up to 20 years in jail if convicted. More»

Alleged Ponzi Schemer Judged Unfit to Stand Trial

R. Allen Stanford 'mentally impaired,' judge decides

(NEWSER) - Jailed Texas billionaire R. Allen Stanford is mentally impaired and incompetent to stand trial, a federal judge ruled yesterday. Psychiatrists testified that Stanford, who is accused of masterminding a $7 billion Ponzi scheme, is suffering from a major depressive disorder, an addiction to anti-anxiety medication, and a brain injury he suffered in a jail fight. More»

Hundreds Nabbed in Scam Artist Crackdown

Justice Department brags about wave of arrests

(NEWSER) - Federal authorities have charged more than 500 people with various forms of fraud during a 3.5-month probe, in what Eric Holder today termed the largest crackdown on scam artists in US history. Of those, 343 were criminally charged, with the defendants accused of everything from running Ponzi schemes to pump-and-dump scams to foreign-exchange frauds. Another 189 have been civilly charged, according to the Wall Street Journal . More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

SEC Charges 'Mini-Madoff' With Fraud