The emission from Sgr A*, the supermassive black hole in the Galactic Center, shows order of magnitude variability (flares) a few times a day that is particularly prominent in the near-infrared (NIR) and X-rays. We present a time-dependent model for these flares motivated by the hypothesis that dissipation of magnetic energy powers the flares. We show that episodic magnetic reconnection can occur near the last stable circular orbit in time-dependent magnetohydrodynamic simulations of black hole accretion - the timescales and energetics of these events are broadly consistent with the flares from Sgr A*. Motivated by these results, we present a spatially one-zone time-dependent model for the electron distribution function in flares, including energy loss due to synchrotron cooling and adiabatic expansion. Synchrotron emission from transiently accelerated particles can explain the NIR/X-ray lightcurves and spectra of a luminous flare observed 4 April 2007. A significant decrease in the magnetic field strength during the flare (coincident with the electron acceleration) is required to explain the simultaneity and symmetry of the simultaneous lightcurves. Our models predict that the NIR and X-ray spectral indices differ by 0.5 and that there is only modest variation in the spectral index during flares. We also explore implications of this model for longer wavelength (radio-submm) emission seemingly associated with X-ray and NIR flares; we argue that a few hour decrease in the submm emission is a more generic consequence of large-scale magnetic reconnection than delayed radio emission from adiabatic expansion.
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