So, yesterday we told you about the rumour of another Ponzi scheme in Florida and then how investment manager Art Nadel hotfooted it out of town to parts unknown.
More details are emerging about the Ponzi and the runner. We know that investors in the funds in question—Viking, Valhalla and Scoop—were informed that $350 million is missing.
Nadel, a big fish in Sarasota, socially and philanthropically, went AWOL earlier this week. Cops found out after wife Peg went to them about a suicide note she found, which explains why the first people who reportedly investigated this fraud were the Sarasota cops and not the SEC.
HeraldTribune.com (Sarasota): In a statement issued Thursday to investors, Moody [Neil Moody, 70, president of Viking] confirmed the funds appear depleted.
“Unfortunately, just yesterday afternoon we became aware of an extremely serious situation suggesting that the funds may have virtually no remaining value,” Moody wrote.
Moody, who lives part time in Evergreen, Colo., has told several investors interviewed by the Herald-Tribune that the funds’ value totaled $350 million. He said he has contacted the U.S. Securities and Exchange Commission and “all appropriate authorities” to report the situation.
Moody is telling clients that Nadel did all the fund trading, and that Moody had no idea anything was wrong until this week.
…Despite the carnage on Wall Street last year, investors were told that their investments had earned more than 8 per cent as of November.
Investors interviewed by the Herald-Tribune said they realised something was wrong when they failed to receive their December statements, or when they did not receive requested distributions.
Scoop could not meet a year-end demand for $50 million in withdrawals from investors…
Nadel, 75, and Moody, 70, operated under the name Scoop Management Inc. in a double storefront at 1816 Main St., across from the Bank of America building.
…Management there appeared in a state of turmoil on Friday. Peg Nadel and son Geoff Quisenberry said they could not comment on the size of the company’s assets under management, the number of clients, how much has been lost, or even whether it is accurate to call them a hedge fund operator.
Oh, and this fund received some praise back in the day.
In a 2003 report, Sarasota-based The Wall Street Digest lauded Nadel’s and Moody’s experience, especially Nadel’s “black box” computer trading program.
Hat Tip: Reader “Tyler Durden,” who has been keeping up with this story. He has many details about Nadel/Valhalla on his blog Zero Hedge.
See Also: Another Money Manager Goes On The Lam
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