BUSINESS
02/17/2009 05:12 am ET Updated May 25, 2011

Arthur Nadel, Money Manager, Missing In Florida: UPDATE: ARRESTED BY FBI

UPDATE 1/27

AP reports that Arthur Nadel, a Florida money manager who was reported missing earlier this month, has been arrested by the FBI:

A Florida hedge fund manager who disappeared this month just as he was due to pay investors $50 million turned himself in to authorities Tuesday to face federal securities and wire fraud charges.

Arthur Nadel, accompanied by two attorneys, surrendered in Tampa, about an hour north of his home in Sarasota, the FBI said.[...]

Federal regulators last week sued Nadel for fraud, saying he misled investors and overstated the value of investments in six funds by about $300 million. The Securities and Exchange Commission also won a court order freezing his assets.

Reuters reports on yet another possible "Mini-Madoff":

A Florida money manager is missing and police have opened an investigation into the possible disappearance of "hundreds of millions" of dollars, authorities said on Friday.

Police are searching for Arthur Nadel, 75, a prominent Sarasota philanthropist and fund manager who was reported missing by his family on Wednesday.

Nadel's hometown paper, The Sarasota Herald-Tribune, has more details, and reports that a suicide note was found by Nadel's wife, Peg:

Investors in a Sarasota-based hedge fund could be out $350 million, and the man behind it has vanished. Managers of the fund are telling clients that their money is gone, and they do not know if any will be recovered.[...]

Investors -- from individuals to the Sarasota YMCA Foundation -- in the funds branded Viking, Valhalla and Scoop were stunned this week to learn they may be victims in what could become the largest investment swindle in Southwest Florida history.