Washington, DC - Arthur Nadel, a trader and investment adviser for six hedge funds, has been charged with fraud by the Securities and Exchange Commission (SEC). The US regulator says Nadel provided false and misleading information for dissemination to investors, overstating the value of investments in funds by approximately $300 million.
The funds in fact contained less than $1 million. The complaint also alleges Nadel, who has been missing from his Sarasota, Florida home since January 14 2009, transferred at least $1.25 million from two of the funds to two secret bank accounts under his control.
The SEC's Miami office says two firms, Scoop Capital and Scoop Management, provided investment advice to the funds involved and also engaged in fraud as a result of Nadel's actions. The SEC has frozen the defendants' assets and is appointing a receiver.
The six hedge funds and two other investment management companies involved are also charged as relief defendants, as a result of the false information from Nadel that they disseminated to customers. The SEC says the firms implicated are co-operating with its investigation.
More on Regulation
ABA calls for better ways to compare bank capital between countries
US regulator will pursue a quicker route to exempt foreign CCPs
ECJ decision means new problems for data preservation
Discussion crystallises over regulatory streamlining
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.