Florida money manger Arthur Nadel pleads guilty to securities fraud charges

Fla. money manager pleads guilty to fraud

NEW YORK — A Florida hedge fund manager accused of bilking investors of millions of dollars has pleaded guilty to securities fraud charges.

Arthur Nadel apologized to his victims Wednesday as he entered the plea before a federal judge in Manhattan.

He could spend the rest of his life in prison.

The 77-year-old grabbed headlines last winter when he disappeared as investigators scrutinized his business dealings.

He traveled the country for two weeks, but kept in touch with his family with a series of letters, including one in which he worried he’d be labeled a “mini-Madoff.”

He also urged his wife: “Sell the Subaru if you need money.”

Prosecutors say Nadel lost $162 million of his investors’ money. He told them they were making big profits.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — A Florida hedge fund manager accused of bilking investors of up to $350 million has been scheduled to go before a federal judge in New York City.

Lawyers for Arthur Nadel had been negotiating a plea bargain with prosecutors and had said earlier this month that it was “very likely” his case would be resolved within weeks.

The 77-year-old grabbed headlines last winter when he disappeared as investigators scrutinized his company.

He traveled the country for two weeks, but occasionally wrote his family worrying that he would be labeled a “mini-Madoff.”

He also urged his wife to “Sell the Subaru if you need money.”

Prosecutors say Nadel defrauded hundreds of investors by falsely claiming he was a successful stock trader, while spending their money on his lavish lifestyle.