More Civil Chargers For Arthur Nadel Ponzi Scheme. The Securities and Exchange Commission has filed more civil chargers in the Arthur Nadel Ponzi scheme. This time, the Commission is targeting the father-son investment team of Neil and Christopher Moody.
The SEC complaint alleges that the two disseminated misleading materials to investors about their hedge funds Valhalla Investment Partners L.P., Viking IRA Fund LLC, and Viking Fund LLC from at least 2003 through December 2008 According to the Commission, the materials misrepresented the hedge funds’ historical investment returns and overstated their asset values by as much as $160 million
Grossly Overstated Performance Numbers
According to the SEC, the Moodys based their materials on grossly overstated performance numbers that Nadel created and provided to them. The SEC also alleges that the Moodys 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.
Nadel, who was indicted last year on 15 fraud counts, was president of Sarasota-based Scoop Management. The hedge funds managed by Scoop included Viking IRA, Valhalla Investment Partners LP, Viking, Victory, Victory IRA and Scoop Real Estate. Nadel reportedly told his 350 investors that his funds held $360 million, but in truth, they only held around $125,000.