U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21506 / April 26, 2010
Securities and Exchange Commission v. Neil V. Moody and Christopher D. Moody, (U.S. District Court for the Middle District of Florida, Civil Action No. 8:10-cv-0053-T-33TBM)
Judgments of Permanent Injunction and Other Relief Entered Against Defendants Neil V. Moody and Christopher D. Moody
The Commission announced that on April 7, 2010, The United States District Court for the Middle District of Florida entered Judgments of Permanent Injunction and Other Relief against Defendants Neil V. Moody and Christopher D. Moody. The Judgments, entered by consent, enjoin the defendants from violation of Section 17(a) of the Securities Act of 1933, Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and Section 206(4) and Rule 206(4)-8 of the Investment Advisers Act of 1940. The Judgments set the issues of disgorgement and civil penalties for later determination by the Court upon motion by the Commission.
The Commission began this action by filing its complaint on January 11, 2010, against Neil and Christopher Moody in connection with their management and control of three hedge funds from at least January 2003 through January 2009. The complaint alleges that Neil and Christopher Moody distributed materials to investors that overstated the historical returns and asset values of three hedge funds they managed and controlled. The complaint also alleges that the defendants disseminated to investors and prospective investors offering materials, account statements, and newsletters that misrepresented the hedge funds' historical investment returns and overstated their asset values by almost $160 million.
For additional information, see Litigation Release No. 21372 (January 11, 2010).