* * * UPDATED; SEE BELOW * * *
UPDATE: This is almost funny, were it not so tragic. Here We Go Again:
Florida’s Nadel Missing as FBI, SEC Investigate Funds
By Susan Decker and Saijel Kishan
Jan. 18 (Bloomberg) — The FBI and securities regulators joined the investigation of Arthur Nadel, the Florida hedge-fund manager who disappeared four days ago, leaving clients concerned they may have lost as much as $350 million.
The Federal Bureau of Investigation and U.S. Securities and Exchange Commission are helping on the case, Sarasota Police Lieutenant Stanley Beishline said yesterday in a telephone interview. One of Nadel’s business partners, Neil Moody, said Nadel had spoken to his wife since taking off. Nadel, 76, is president of Scoop Management Inc. in Sarasota, which oversees funds including Valhalla Investment Partners LP.
Moody called his broker “and the amount did not jibe with what Mr. Nadel said we had.” As much as $12 million of the Moody family’s money may be lost and how much remains is not known. “It looks very bleak,” Moody said.
The Herald-Tribune in Sarasota, on Florida’s west coast, described Nadel as a “prominent player in Sarasota social and philanthropic circles.”
Scoop provided trading services for Valhalla, Viking and Viking IRA funds under a contract with Moody. Scoop also handled trading for three Nadel funds: Victory, Victory IRA and Scoop Real Estate, Moody said.
The disappearance of Nadel comes more than a month after Bernard Madoff, 70, was arrested for securities fraud after allegedly using billions of dollars from new investors to pay off older ones. Madoff told authorities that investors may have lost $50 billion in a “giant Ponzi scheme,” prosecutors said. Many of his investors live in Palm Beach, on Florida’s east coast.
Indiana investment adviser Marcus Schrenker was taken into custody by police in Gadsden County, Florida, last week after he allegedly attempted to fake his death in a plane crash and use a motorcycle to escape. Authorities said Schrenker may have defrauded investors through three companies he owns in a suburb of Indianapolis, CNN reported.
Makes you begin to understand why all those folks who lived through the Depression didn’t trust banks and put their savings into mattresses, doesn’t it? I find myself wondering how many of these “Investment Managers” are going to pop up in the future and be exposed as well?