Arthur G. Nadel is in the news again. Accused in January of embezzling from his investors to the tune of hundreds of millions, Nadel is deferring guilt to his father/son, ex-business partners, Neil and Chris Moody. That’s a surprise, eh?

Neither Moody has been charged in the Ponzi scheme they helped manage in Sarasota’s Scoop Management hedge fund office. The Moodys were principals for three Viking Management LLC hedge funds managed by Scoop Management.

Nadel’s defense attorney, Mark Gombiner, submitted documents to the federal judge in New York supporting lower bail for Nadel. He was specific in that the government account omits any mention, in the face of “overwhelming evidence,” of Neil and Chris Moody’s involvement.

One defense attorney for the father/son team denied Gombiner’s implications. He stated that the two have been wholly cooperative since the Ponzi scheme was discovered by government officials. He also stated that neither had knowledge of any fraud.

Yeah, right, and I’ve got eighteen inch biceps AND a bridge to sell you.

In Nader’s defense, Gombiner produced a letter from Anil Deolalikar, a Riverside, California resident who lost $1.38 million over five years of investing with Viking Management LLC. Deolalikar says he dealt strictly with two individuals from that company in regards to his investments. The two individuals? Vice President Chris Moody and Treasurer and fund administrator Andrew Martin.

Deolalikar stated that he remembers asking Chris Moody specifically in February 2008 why the company was not using an external auditor to certify and audit its books. He noted that Moody never provided a good answer.

This is just a teaser, it appears, as to what Gombiner will be presenting as Nadel’s defense.

In conjunction with the defense’s strategy, Burton Wiand, court-appointed receiver in the Securities and Exchange Commissions’s (SEC) civil case against Nadel, intends on issuing asset seizures to include that of the Moodys’. Wiand believes the two controlled a major portion of several of the hedge funds.

Keep in mind that the Moodys shared in Nadel’s $97 million revenue from advisory, management and profit incentive fees charged to investors.

Meanwhile, Gombiner’s intent is to reduce Nadel’s bail to $1 million from $5 million. He wants to see the 76-year-old guy go home to Sarasota until the trial proceedings..