Federal authorities join hunt for fund manager as investors report losses

19 January 2009

The FBI and the Securities and Exchange Commission (SEC) have joined the hunt for a Florida-based hedge fund manager after he "disappeared" with what could be at least $3.5 million in investors' money.

Arthur Nadel, president of Scoop Management, was reported missing on Wednesday (January 14th) after calling his stepson sounding "distraught". He reportedly left a note, although the police have yet to disclose its contents Reuters stated.

Mr Nadel's car was later found at Florida's Sarasota-Badenton International Airport, although at this stage, law enforcement cannot confirm if he has left the state or the US.

Since the investment manager's appearance, at least five investors are believed to have come forward claiming to have more than $500,000 each, the news agency noted.

Figures from the Herald-Tribune cited by Bloomberg suggest that Scoop Management may have controlled up to $350 million.

Investors now have little choice but to wait and see what has happened to the money they entrusted to Mr Nadel, Reuters added.

The fund manager made his name using computer-generated investment and trading programs that Wall Street Digest publisher Donald Rowe said produced the most consistent returns he had ever witnessed, the news agency noted.

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