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Sarasota financier Arthur Nadel is no longer the only person to be officially accused of wrongdoing in an alleged Ponzi scheme where hundreds of investors lost $400 million.
Nadel's former business partners, Neil and Chris Moody, are now part of that list. The Moodys, father and son, reached a settlement agreement with the U.S. Securities and Exchange Commission Jan. 11 in which they neither admit guilt nor deny securities fraud charges brought by the agency in the case.
SEC officials say the Moodys misled investors as Nadel's alleged scheme took place. As part of the agreement, the Moodys can't work as investment advisers for five years. The SEC can take further financial action against the Moodys.
Meanwhile, Christopher Moody is almost at the end of a process in which he was ordered to sell his material assets. Moody and his wife, Tamara, sold their 3,820-square-foot Sarasota home last month for $1 million. The Moodys bought the house for $2.3 million in 2005.
Tampa attorney Burt Wiand, the court-appointed receiver in the case, says the property was in deep debt and was sold in a short sale. “I'm not talking $100,000 in debt,” Wiand says. “It was significantly under water, and nobody was paying the debt.”
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