Jan. 27 (Bloomberg) -- Florida hedge-fund adviser Arthur Nadel was arrested in Florida by the Federal Bureau of Investigation and has been charged with securities fraud.
Nadel’s arrest comes a week after U.S. regulators accused him of defrauding clients while overstating six funds’ investments by $300 million. Nadel, 76, who disappeared Jan. 14,“recently” transferred at least $1.25 million from two funds to a secret bank account, the Securities and Exchange Commission said in a lawsuit filed Jan. 21 at federal court in Tampa, Florida. The funds’ total assets now are less than $1 million,the agency said. Nadel will appear in court today.
The FBI arrested Nadel today in Tampa, agency spokeswoman Monica McLean said in an interview.
The SEC case is Securities and Exchange Commission v. Arthur Nadel, et. al., 09-cv-00087, U.S. District Court for the Middle District of Florida (Tampa).
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