SEC Charges Missing Florida Money Manager With Fraud
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Federal regulators have charged a missing hedge fund manager with fraud, saying he misled investors and overstated the value of investments in the six funds by about $300 million.
The Securities and Exchange Commission won a court order Wednesday freezing the assets of Arthur G. Nadel, of Sarasota, Fla., and other defendants in the case.
Nadel owed investors a $50 million payout, told his wife in a note he felt guilty and threatened to kill himself, according to the Sarasota County Sheriff's Office. Authorities believe that Nadel, 76, planned his Jan. 14 disappearance.
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The SEC says Nadel recently transferred at least $1.25 million from two of the hedge funds to secret bank accounts that he controlled.