Nadel Partners Sued By Investor

Feb 9 2009 | 2:08am ET

One of Arthur Nadel’s clients has sued the two of the accused hedge fund fraudster’s partners.

Louis Paolino, who had more than $5.8 million invested in the Viking Fund, accuses Neil and Chris Moody of lying about the fund’s returns. According to Paolino, the Moodys told him that the Viking fund—one of the hedge funds that Nadel subadvised—was consistently beating the market when it was actually losing money,

“Defendants created this perception by issuing false and misleading statements of account that reflected returns on equity much higher than the actual performance of the Viking Fund,” the lawsuit, filed in civil court in Sarasota, Fla., last week, alleges. “As a result of the false and misleading statements of account, Viking’s ability to outperform the market as an investment was grossly inflated. In fact, Viking’s actual total return on equity since its inception was roughly zero.”

Unlike their partner, the Moodys have not been charged with any crime.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...