Sunday, January 25, 2009

Another T.J.B. Madoff-Like Scammer: Arthur Nadel....

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More T.J.B. from another choosenite:
In a case with parallels to the Bernie Madoff scandal, a prominent Florida hedge fund manager has vanished - and so has up to $350 million of his clients' money.

Sarasota police are looking into claims that Arthur Nadel, 76, defrauded investors before leaving a distraught note for his family and disappearing.

Cops began investigating on Friday after investors complained that Nadel, president of Scoop Management, left them high and dry.

"You're talking about people who have lost the majority of their life savings," Police Capt. Bill Spitler said. "Many of our victims have lost $500,000 and up."

Neil Moody, Nadel's business associate, said six funds worth $350 million at the end of the year may be worthless.

"We'd like to get him back here to answer some questions," said Moody, who knew Nadel for 12 years.

He said it was unclear whether Nadel had stolen money but that his own family had $12 million at stake. Nadel graduated from New York University Law School but was disbarred decades ago for investing escrow funds, Moody said.

Nadel's fifth wife, Peg, filed a missing persons report on Wednesday. She said she was worried about her husband and working with authorities.

But Moody believes Nadel is alive.

"At this point we have every indication that he is," Moody told Reuters, adding that he did not know where Nadel was.

"If we knew where he was, we'd be on him," Moody said.

Jerry Meketon, a 76-year-old retired psychologist married to one of Nadel's ex-wives, said investors should have been more aware of the potential pitfalls.

"He was lauded as a brilliant investor who worked out of a black box," he said. "You put money in, you don't know how he works it, but money comes out."

Last month, authorities charged Madoff, 70, with duping investors in a $50 billion Ponzi scheme.

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