A money manager from Florida named Arthur Nadel has disappeared and now raised fears of another huge securities fraud scandal. This comes within days of an expected $50 million payout to his investors after he left. The Associated Press says that many of those investors, who have trusted Nadel with their entire life savings, now fear that they have lost everything.
According to the New York Times, Nadel was first reported as missing by his family on Wednesday of last week. He left a suicide note and his family said that he sounded quite distraught. However, Bloomberg.com says that he has since spoken to his wife from New Orleans.
Sounds fishy, doesn’t it?
Nadel was the president of Scoop Management Inc., a firm that managed six private investment funds. These funds managed by Scoop included Viking IRA, Valhalla Investment Partners LP, Viking, Victory, Victory IRA and Scoop Real Estate. Three of these were all managed by Nadel under contract with his partner and founder of Valhalla, Neil Moody. The other three were Navel’s own funds.
Immediately following his disappearence, police began receiving complaints from several investors. One report says that Nadel’s partners believe that as much as $350 million went missing from the Scoop funds.
So what is going on? Where are all of these money managers going?