U.S. News

Trial Set for April in So-Called 'Mini-Madoff' Case

A trial has been set for April 26 in the case of Arthur Nadel, the Sarasota, Fla., philanthropist and hedge fund manager who became the first alleged "mini-Madoff" when the six funds he managed went bust earlier this year.

Arthur Nadel

The SEC claims Nadel, 76, overstated the assets in his hedge funds by approximately $300 million, collecting millions in fees based on the total assets he claimed he was managing.

The agency says Nadel diverted millions more to secret bank accounts and to his other businesses, and a criminal complaint alleges he had been defrauding investors since 2004.

Nadel was the general partner for Scoop Management, which operates three hedge funds. He also managed the assets for the Viking and Valhalla funds, for which Moody serves as general partner. The companies share a single office in Sarasota.

Nadel briefly went missing in January, just as he was due to pay investors $50 million. Police initially investigated the case as suicide before he turned himself in to authorities.

Nadel, who faces three fraud counts, has been held at the Metropolitan Correctional Center in New York, having failed to make bail.