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From Sagar Chakraverty, Opalesque Asia:
Neil V. Moody and his son, Christopher D. Moody, Sarasota, Florida-based investment advisers, face security fraud charges from the SEC. They are alleged to have misled investors about the financial condition of three hedge funds (Valhalla Investment Partners LP, Viking IRA Fund LLC, and Viking Fund LLC) they managed, and claimed that they controlled the funds' investment and trading activities. This was actually being handled by Arthur G. Nadel and his Scoop Management hedge fund firm.
The SEC said on 11-Jan-09 that the Moodys had distributed offering materials, account statements, and newsletters to investors that misrepresented the hedge funds' historical investment returns and exaggerated their asset values by as much as $160m.
It is claimed that the Moodys had failed to independently verify the accuracy of the figures despite multiple red flags, and relied exclusively on Nadel's inaccurate information when communicating with investors.
In a statement released to the media Jeffrey Cox, of Sallah & Cox LLP and lawyer for Chris Moody said, "“The SEC's complaint does not allege that Chris Moody knowingly intended to harm
investors. The complaint alleges recklessness which Mr. Moody neither admits nor denies. Mr. Moody has cooperated from the outset with the receiver in the recovery of assets and
will continue to do so”...................... To view our full article Click here
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