Investors Lose $350million in 'Mini Madoff' Scandal as Hedge Fund

A Florida-based hedge fund manager Arthur Nadel has disappeared under suspicious circumstances leaving his clients empty handed.

Dubbed the ‘mini-Madoff’ scandal, police in Florida are investigating reports that a well known Hedge fund manager has disappeared along with $350million of his investors’ cash.

Arthur Nadel, co-founder of the Sarasota based Scoop Management Inc investment firm and respected philanthropist, was reported missing on Friday after his wife discovered a suicide note.

According to reports however, Nadel has since been in contact with his wife and police have found his car parked at the local airport – raising more than a little suspicion about his sudden disappearance. Cell phone records suggest that he made a number of calls from Slidell, LA, although his exact whereabouts is not known to police.

Since the news broke a number of investors have come forward voicing concerns about the whereabouts of their money, together totaling hundreds of millions of dollars. According to reports Scoop Management failed to send investors their December statements and had not yet fulfilled $50million worth of year-end distribution requests.

Despite this, Nadel had previously assured investors that the three funds managed by his company, Scoop, Viking and Valhalla, had bucked the downwards economic trend and gained over 8% in 2008. It now appears that this money has disappeared completely, with some speculating that it has been moved to accounts overseas.

Neil Moody, co-manager of the Scoop Management funds, is reported to have personally lost $12million in the swindle. He has been speaking to police but claims he had no idea anything was wrong until he heard of Nadel’s disappearance.

source link: http://www.money.co.uk/article/1002573-investors-lose-350-million-in-mini-madoff-scandal-as-fund-manager-disappears.htm