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Nadel, surrendered to the Federal Bureau of Investigation in Tampa, Fla., according to the local ABC affiliate. Last week Nadel, who lives in Sarasota, Fla., was charged with defrauding clients while overstating six funds' investments by $300 million. The fraud may have been uncovered because of the unrelated arrest of Bernard Madoff, who allegedly duped investors out of $50 billion, the FBI said in a criminal complaint that was unsealed in New York at the Manhattan federal court. After years of deflecting requests from an unnamed partner for an independent audit of his books, Nadel finally agreed after Madoff's arrest, according to the complaint. Nadel fled days later after telling his wife how to survive financially without him, the document states. The charging document also includes an excerpt from a handwritten note to his wife that was found shredded at his Scoop Management office on Jan. 15, the day after he disappeared. "If you want to survive this mess, what follows is for your eyes only. I strongly suggest that you destroy it after reading," Nadel wrote. "The avenues to money for you will likely be blocked soon." FBI Special Agent Kevin G. Riordan reported to the court that unnamed Nadel employees at Scoop's offices found several piece of paper in a shredding machine. The employees "put together several of the shredded pieces of paper and turned them over to law enforcement officers." Asked about the document, Nadel's wife told the Sarasota Herald-Tribune Tuesday that she has absolutely no knowledge of any such instructions. "Sell the Subaru if you need money," the FBI quoted him as writing. In its complaint the SEC alleged that Nadel transferred $1.25 million from two of the funds to secret bank accounts under his control. Nadel was adviser for six funds, whose total assets are now less than $125,000, prosecutors said. Nadel traded for three funds established by partnerships Valhalla Management and Viking Management and three funds established by Scoop Management and Scoop Capital LLC. Scoop was created by Nadel himself. Viking and Valhalla were created by unnamed partners. More than 100 investors gave money to the funds, the SEC said. Nadel is charged with one count each of securities fraud and wire fraud, both of which carry maximum prison sentences of 20 years in prison. Nadel, 76, is the latest financial adviser to go on the lam, since the Madoff scandal broke. Marcus Schrenker, 38, earlier in the month attempted to fake his own death by crashing his plane, but was spotted and caught a few days later. - Donna Block Categories Deal Video
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Nowhere to run. So Arthur Nadel, the Florida hedge fund adviser who disappeared nearly two weeks ago, turned himself in to authorities Tuesday. He was charged with defrauding investors of tens of millions of dollars. 
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