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Hedge Fund Manager Agrees To Freezing Of Assets

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By ELAINE SILVESTRINI | The Tampa Tribune

Published: February 2, 2009

TAMPA - Sarasota hedge fund manager Arthur Nadel, arrested last week on fraud charges, has entered into an agreement with the Securities and Exchange Commission consenting to the freezing of his assets.

Nadel, 76, is being held without bail while he awaits federal prosecution in New York on charges of securities and wire fraud.

He was sued Jan. 21 by the SEC, which accused him of deceiving investors and putting more than $1 million into secret bank accounts before he disappeared for 13 days.

In a bail hearing Friday, Nadel's attorneys said he wanted to cooperate with the federal regulatory agency and help try to locate as much money as possible for investors.

Today, the SEC notified the court that Nadel had agreed to an order preventing him from violating securities laws, freezing his assets and requiring him to provide sworn accountings of the funds.

Nadel, who does not admit any guilt, also is required in the consent order to return to the United States all funds and other investor assets described in the SEC's complaint for deposit with the court. He also agreed to surrender his passport and not obtain additional passports.

A hearing is scheduled for Wednesday morning. It is unclear whether the consent order will alter that schedule.

Reporter Elaine Silvestrini can be reached at (813) 259-7837 or esilvestrini@tampatrib.com.

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