While accused hedge fund fraudster Arthur Nadel returns to court today in an effort to win back his freedom, two partners are trying to get their jewelry back.
Neil and Christopher Moody, who have not been charged with a crime but have been sued by a Nadel client, have asked a Florida judge to give them back $675,000 in gems and jewelry they financed to sell to a store, the Sarasota Herald-Tribune reports. The judge created a receivership to seize the jewels two weeks ago, after investor Louis Paolina sued the Moodys, alleging they lied to him about the performance of the Viking Fund, once of the hedge funds subadvised by Nadel.
According to Paolino’s suit, the Moodys used management fees earned on Nadel’s fraud to buy the jewelry.
A lawyer for the Moodys filed a motion last week to dissolve the receivership, arguing that there is no legal reason to hold the assets.
Meanwhile, in New York, Nadel will be back in court, as his attorneys and prosecutors spar over whether the Scoop Management chief, accused of ripping off investors to the tune of $300 million, should be released on bail to his Florida home.