Missing hedge fund manager reappears

? On the day a Florida hedge fund manager surrendered to face federal securities and wire fraud charges, authorities disclosed what may have set in motion his two weeks on the lam: A partner concerned about the health of their funds after the Bernard Madoff scandal was pressuring him to have their books audited by an independent accountant.

It’s not yet clear where Arthur Nadel was during his time on the run, but he peacefully surrendered to authorities with two lawyers in tow in Tampa, about an hour north of his home in Sarasota, the FBI said.

Nadel, who was due to pay investors $50 million when he disappeared, was chained at the waist and wrists when he appeared in court later Tuesday. Attorney Barry Cohen said Nadel is not violent and asked that he be released on his own recognizance. He said Nadel has emotional problems and does not pose a flight risk, but a federal judge ordered him held at least until Friday.

Asked outside court where his client had been, Cohen said, “He went away for a while just to be alone.” He said Nadel turned himself in as soon as he learned about the charges.

A law enforcement official who spoke to The Associated Press on the condition of anonymity because the investigation wasn’t complete said authorities believe he spent time on the run in Louisiana and North Carolina before ending up in Florida. They also suspect he was traveling on a private jet.

Also on Tuesday, it was revealed Nadel’s employees found what appeared to be handwritten instructions to his wife to prepare for the ordeal by taking out money. Nadel warned that her avenues to money would soon be blocked and told her to “withdraw as much cash as you can,” court documents state.

Federal regulators last week sued Nadel for fraud, saying he misled investors and overstated the value of investments in six funds by about $300 million. The Securities and Exchange Commission also won a court order freezing his assets.

A criminal complaint unsealed Tuesday in federal court in Manhattan alleges Nadel has been defrauding investors since 2004.

Nadel, 76, disappeared Jan. 14 after telling his wife in a note that he felt guilty.