According to the regulator's complaint, Arthur Nadel provided "false and misleading information" to investors about the historical returns of six funds where he acted as principal investment advisor.
He is also accused of falsely overstating the value of the funds by around $300 million. The SEC says the investment pools actually have assets of less than $1 million.
Furthermore, Mr Nadel is alleged to have transferred at least $1.25 million from two of the funds to secret bank accounts under his control.
The SEC said it has obtained an emergency court order freezing Mr Nadel's assets. It has also appointed a receiver for his investment firm, Scoop Management.
David Nelson of the SEC's Miami office said: "Mr. Nadel's alleged actions deceived investors and we are seeking to hold him accountable for that misconduct."
Since Mr Nadel's disappearance on January 14th, at least five investors have claimed related losses of at least $500,000, Reuters reports.