TAMPA TRIBUNE...MISSING FLORIDA MONEY MANAGER TURNS HIMSELF IN TO TAMPA FBI. SARASOTA'S ART NADEL ARRESTED IN TAMPA BUT HE WILL BE SHIPPED TO NEW YORK CITY TO STAND TRIAL IN FEDERAL COURT, ART NADEL NYC MOB LINKS IN QUESTION. ART NADEL HAD AN ACCOMPLICE IN NEW YORK CITY, THE "BROKERAGE FIRM." READ THE COMPLAINT CLICK HERE. Sarasota hedge fund manager Art Nadel operated Scoop Investments LP a Florida Fictitious Name owned by Scoop Investments, LTD from 7/27/2001 to 1/01/2006. Art Nadel appears to have had a partner in the Scoop Investment LP who also runs Hedge Funds, this partner has an operation on the East Coast of Florida and an office on 7th Ave in New York City.
A federal criminal complaint out of New York charges Nadel with securities fraud and wire fraud. . Each charge carries a maximum prison sentence of 20 years, along with financial penalties. The complaint accuses Nadel of using "manipulative and deceptive devices" to defraud investors.
It says he transferred more than $1 million from a New York brokerage firm to an account he controlled. The Securities and Exchange Commission, in a civil complaint last week, said Nadel transferred $1.25 million into secret bank accounts.
The criminal complaint describes victims in New York and California and says two funds had more than 100 investors nationwide. A New York-based hedge fund invested $13.6 million into funds controlled by Nadel, according to the complaint.
Nadel's employees found several pieces of paper in a shredding machine in Nadel's office in Sarasota. The employees put the pieces together and gave them to law enforcement. They appeared to be pieces of a multi-page letter handwritten by Nadel to his wife: "If you want to survive this mess, what follows is for your eyes only. I strongly suggest you destroy it after reading. …
"The avenues to money for you will likely be blocked soon. You must use the trust (yours) to your benefit as much and as soon as possible. Please look for the (bank) credit card account and you will see a large credit balance that can be used in the usual way or to withdraw cash. Withdraw as much cash as you can, as this account might also become blocked. ...
"I have closed the POBx. Look at all the recently paid bills in the 'package' to see where they stand. Also in the package are enough documents that I think will do the trick to give you complete control and ownership of what is left, and even documentation for divorce.
For the first time Officials investigating the missing $342 million managed by Arthur G. Nadel are calling it a Ponzi scheme. "It appears that it looks like a Ponzi scheme." Nadel, 76, who fled Sarasota on Jan. 14, recently moved at least $1.25 million to secret bank accounts under his control, the SEC has charged.
Nadel does not appear to have lost the money in trading activities, he said. "There is no evidence of any legitimate demise of the funds," Nelson said.This lends more credence to calling Nadel's operation a "mini-Madoff," after New York financier Bernard Madoff, who financed a lavish lifestyle with what prosecutors call a $50 billion Ponzi scheme.
It also raises questions about the source of the money that Nadel and wife Peg splashed around town for years at charities and foundations. Nadel faces one count of securities fraud and one count of wire fraud. An FBI spokesman said Nadel would make an initial appearance in a federal court in Florida but would be charged in a criminal complaint in Manhattan's Southern District of New York.
Last week, surveillance photos were obtained at the home of Art Nadel in Sarasota Fl, a middle aged man was photographed coming out of the Nadel home (by himself) carrying what appeared to be legal sized envelopes and documents.
The unidentified man was driving a silver vehicle that had Georgia license plates and the vehicle appears to have been purchased in the Atlanta area.
Background checks of past address's of Art Nadel show he links to an address in Atlanta GA, also see one of my prior post on Art Nadel here, SEC charges Art Nadel with fraud in Sarasota, Art Nadel Links to a NYC Address, Howard P. Sturman and the NYC Mob
WBI Inc private Detective Agency
WBI Inc private Detective Agency