SEC charges father and son with fraud

WASHINGTON, Jan. 11 (UPI) -- The Securities and Exchange Commission said Monday it has charged a Florida father and son with overstating hedge fund values by as much as $160 million.

Neil Moody and his son, Christopher Moody, claimed they controlled investments for three hedge funds that were actually managed by Arthur Nadel, who was charged last year with securities, the SEC said.

"The Moodys led investors to believe that they were faithfully managing funds invested with them. Instead, they abdicated their responsibilities to investors and ignored warning signs that should have alerted them to the fraud that was occurring all around them," said Glenn Gordon, associate director of the SEC Miami office.

The SEC is seeking permanent injunctions, financial penalties and restitution, the regulator said in a statement.

Jeffrey Cox, an attorney for Christopher Moody, said in a statement Monday the SEC complaint "does not allege that Chris Moody knowingly intended to harm investors."

"The complaint alleges recklessness which Mr. Moody neither admits nor denies," the statement said. "Mr. Moody has cooperated from the outset with the receiver in the recovery of assets and will continue to do so."