Who’s Moody Now? A Couple Of Hedge Fund Operators, According To The SEC

The Securities and Exchange Commission has filed securities fraud charges against two Sarasota, Florida, investment advisers, alleging that they distributed materials to investors that overstated the historical returns and asset values of three hedge funds they managed and controlled. The defendants: Neil V. Moody and his son, Christopher D. Moody. 

According to the SEC's complaint:  From at least 2003 through December 2008, the Moodys disseminated to investors and prospective investors offering materials, account statements, and newsletters that misrepresented the Moody Funds' historical investment returns and overstated their asset values by as much as $160 million. The complaint also alleges that the Moodys misled investors regarding their role in managing the assets of the Moody Funds by claiming that they controlled all of the investment and trading decisions. In truth, another individual controlled nearly all of the Moody Funds' investment and trading activities with no meaningful supervision or oversight by the Moodys, according to the SEC.
 
The SEC charged the Moodys with securities fraud and sought permanent injunctions, disgorgement of illegal gains and financial penalties. Without admitting or denying the SEC's allegations, the Moodys have consented to permanent injunctions against future securities fraud violations. The Moodys also consented to the entry of an SEC order that will bar them for five years from associating with any investment adviser.