Arthur Nadel, president of Scoop Management Inc. remained missing on Monday. Meanwhile funds invested by and through Mr. Nadel had disappeared along with him.

Sarasota, Fla., police said the investigation began on Friday and federal agencies were informed after they received complaints from at least five possible victims, many of whom appeared to have lost more than $500,000.

"What has allegedly gone on also includes federal and other regulatory violations," Capt. William Spitler, spokesman for the Sarasota Police Department, said. "That's why it was important for us to get all the agencies together."

Mr. Nadel, 75, left a note for his family that was characterized by a local newspaper as a suicide note. Police would not disclose its contents but said his family believed he was "distraught" at the time of his disappearance.

Neil Moody, an associate of Mr. Nadel and founder of Valhalla Management Inc. issued the following statement on Saturday: "It appears, however, that Nadel is likely still at large. It also appears that he has engaged in improper and unauthorized activities. The owners of Valhalla Management, who had contracted with Scoop Management to invest substantially all of Valhalla and related fund's assets, are cooperating with all local and federal authorities to determine exactly what happened."

According to people familiar with the matter Nadel told investors that he had developed a computerized investment program that produced a good track record with consistent returns.