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

(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.