January 13, 2010 – Neil Moody and his son, Christopher Moody, have been linked by the SEC to a hedge fund scam run by Arthur Nadel. The Moodys used Nadel as the sole investment adviser for their Sarasota, Florida based hedge funds: Valhalla Investment Partners, L.P., Viking IRA Fund, LLC, and Viking Fund, LLC. On Monday, the SEC filed a complaint in federal court in
the middle district of Florida, alleging that the Moodys provided false information to investors about their funds.
According to the SEC, from 2003 to December 2008 the Moodys disclosed information to their clients and future investors, which grossly overstated the historical returns and current value of their funds by as much as $160 million. The complaint claims that statements made by the Moodys were based on Nadel’s unverified figures. The SEC claims that there were several indications to the Moodys that should have caused them to question Nadel’s numbers.
The SEC also claims that the Moodys told investors that they made all of their own investment and trading decisions, when in fact it was Nadel that maintained virtually total control over these decisions. According to the complaint, the Moodys did not exercise any legitimate supervisory role over Nadel, and failed to independently verify any of his numbers.
The U.S. District Court for the Middle District of Florida has entered a Consent Order, enjoining the Moodys from committing further securities fraud. The Moodys also consented to an Order that bans them for five years from associating with any investment adviser.
If you invested with Valhalla Investment Partners, L.P., Viking IRA Fund, LLC, Viking Fund, LLC, and/or Arthur Nadel, or are the victim of some other type of investment fraud, the Law Offices of the attorney, and its affiliates, is prepared to review your situation and potential claim(s) without charge, and will consider representing you on a contingent fee basis, which means that you will not have to pay out of pocket for your legal representation. The firm will take a fee only if we are successful in recovering your assets.
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