Money Manager Is Missing in Florida
January 17, 2009
By REUTERS
nytimes.com
MIAMI — A Florida money manager is missing and the police have opened an investigation into the possible disappearance of “hundreds of millions” of dollars, according to the authorities.
The police are searching for Arthur Nadel, 75, a prominent Sarasota philanthropist and fund manager who was reported missing by his family Wednesday. He left a note, described as a suicide note by The Sarasota Herald- Tribune, that reported that investors could be out as much as $350 million.
The Sarasota police are investigating complaints from at least five investors in Mr. Nadel’s funds, run from a management office in Sarasota, that their money has disappeared.
“It was brought to our attention that there has been a very significant number of victims with a very significant amount of money that has disappeared,” Captain Bill Spitler of the Sarasota police said. “Allegedly it’s hundreds of millions of dollars.”
The investigation began just over a month after the authorities arrested Bernard L. Madoff, the suspected mastermind of a Ponzi scheme that may have cost investors $50 billion.
Lieutenant Chuck Lesaltato, a spokesman for the Sarasota County Sheriff’s Office, said investigators were told Mr. Nadel left his home in a Sarasota suburb Wednesday morning for work but later called his stepson and told him there was a note at his house. The family then called the police.
“They thought he was distraught,” Lesaltato said, adding that he could not divulge the contents of the note. “We are following up a couple of leads. We are concerned for his safety.”
The newspaper reported that Neil Moody, an associate of Mr. Nadel, told investors in a statement that the funds “may have virtually no remaining value.” It said Mr. Moody had contacted the U.S. Securities and Exchange Commission and other authorities to report the situation.
A call to the fund’s offices was not returned.
Spitler said that the police investigation began on Friday afternoon after calls from at least five possible victims and that many more called after news of the situation broke.
“You’re talking about people who have lost the majority of their life savings,” he said. “We are investigating all of the funds at that place.”
“Many of our victims have lost $500,000 and up,” he said.
Mr. Nadel’s wife, Peg, told the newspaper: “The way I want to be represented is we are totally open and cooperative with all our clients and the authorities, and that includes the SEC.
“We have nothing to hide. But until our counsel has a statement prepared for us to make public, we cannot comment on what is happening here.”
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