Arthur Nadel, the Florida money manager whose disappearance has raised fears of another massive securities fraud scandal, was apparently expected to deliver a $50 million redemption to investors the day after he went missing.Â According to the Associated Press, those investors, many of whom had trusted Nadel with their entire life savings, now fear they have lost everything.
According to The New York Times, Nadel was first reported missing by his family on Wednesday.Â He is said to have left a suicide note, and his family said he sounded â€œdistraughtâ€.Â But according to a report on Bloomberg.com, Nadel has since spoken by phone to his wife, reportedly from New Orleans.
Nadel was president of Scoop Management Inc., a firm that managed six private investment funds.Â The funds managed by Scoop included Viking IRA, Valhalla Investment Partners LP, Viking, Victory, Victory IRA and Scoop Real Estate.Â Viking IRA, Valhalla and Viking funds were managed by Nadel under contract with his partner and Valhalla founder Neil Moody.Â The other three were Nadel’s own funds.
After his disappearance made news in Florida, police there began fielding complaints from investors.Â Â A lieutenant with theÂ Sarasota police told The New York Times that â€œallegedly hundreds of millions of dollarsâ€ of investor money has gone missing.Â One report said Nadel’s partners believe as much as $350 million were missing from the Scoop funds.
According to the Associated Press, Nadel was supposed to deliver a payouts totaling $50 million to some of his estimated 600Â investors from across the country on January 15.Â The six funds Nadel managed had sustained losses in October, but an internal accountant for Scoop Management told the Associated Press that Nadel did not seem nervous about the redemption.
According to a report in the Herald Tribune, many investors who requested withdraws from their funds in December and January were told by Scoop employees they would have to wait until January 15.Â They told the Herald Tribune that had never had to wait for their money before.
According to the Herald Tribune, Neil V. Moody, Nadel’s business partner, told investors in a statement last week that he only learned on Jan. 14 “of an extremely serious situation suggesting that the funds may have virtually no remaining value.”
But some investors are suspicious of Moody’s claims that he and other people at Scoop only learned of situation that day.Â They point to the fact that their fund withdrawals were delayed by Scoop until a day after Nadel disappeared.Â Now, Nadel and their money is nowhere to be found.