Missing fund manager surrenders to authorities

29 January 2009

An investment manager accused of misleading investors by falsely overstating the value of six hedge funds under his control to the tune of $300 million has been arrested in Florida after turning himself in to federal authorities, it has been reported.

Arthur Nadel, who ran the investment firm Scoop Management, had disappeared on January 14th after leaving an apparent suicide note for his family.

Flanked by two defense lawyers, he surrendered at the FBI field office in Tampa and was taken into custody, a spokesman for the bureau said.

Last week, the Securities and Exchange Commission filed charges against Mr Nadel accusing him of providing "false and misleading information" to investors regarding the historical returns of his funds.

The complaint said that while Mr Nadel said the funds were worth around $300 million, their actual assets totaled less than $1 million.

He is also alleged to have siphoned away $1.25 million in clients' money to his personal bank accounts.

A judge in Tampa ordered Mr Nadel detained until a bail hearing on Friday (January 30th).

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