Missing Florida Money Manager Owed $50 Million Payout

The world of high finance has certainly seen its share of high profile fraud cases over the past few months. First there was Bernard Madoff who bilked investors out of some $50 billion in what may be the largest Ponzi Scheme ever run. Then there was the case of Marcus Schrenker who was arrested in Florida after trying to fake his own death as investigators were closing in on his shady financial dealings. Now add 75 year old Sarasota Florida hedge fund manager Arthur G. Nadel to the list. In what may be another case of financial fraud, Nadel has disappeared just as he was to give a $50 million payout to some of his investors.

Authorities have been looking for Nadel for the past several days as he has disappeared and left a note to his family that is said to be one filled with distress. On January 15^th Nadel's green Subaru was found in the parking lot of a Sarasota airport but his whereabouts remain unknown (source: news.yahoo.com).

Nadel, who ran six hedge funds, traded with a company called Scoop Management Inc. According to a Scoop Management accountant, Nadel was scheduled to make some $50 million in redemption payments for some of the investors when he disappeared. The payment was set to be made after the fund that had about 600 investors saw a loss in October (source: news.yahoo.com). But if this is a case of fraud, Nadel certainly didn't fit the bill.

Those who worked with Nadel said he was always smiling while at the office and seemed to be on top of his game. Nadel was known largely for his generosity in the Sarasota community and he frequently gave money to the Habitat for Humanity, the Jazz Club of Sarasota and other non-profit organizations. According to those that knew him well, he did not drive a fancy car, nor did he live a flashy, lavish lifestyle. He is said to have preferred pants and a shirt to a tuxedo and lived in a middle-class ranch-style home (source: news.yahoo.com)

Perhaps this is a case of a money manager trying to do too much. Maybe Nadel, seeing his losses pile up for his investors, made some rash decisions that he would not have normally made and inadvertently lost it all. Then again, maybe he was stashing the money all along in what could turn out to be another case of high finance fraud. Whatever the case may be investors are left now holding the bag (which is now apparently empty) and wondering what happened to their money.