Earlier today, Mina Tadrus admitted guilt at the federal courthouse in Brooklyn, New York for committing investment adviser fraud. The charges relate to a scheme that defrauded investors of over $5 million through Tadrus Capital LLC, a hedge fund he founded and operated. The plea was entered before United States District Judge Hector Gonzalez. Tadrus faces a potential sentence of up to five years in prison. He was initially charged in September 2023.
The announcement of the guilty plea was made by John J. Durham, United States Attorney for the Eastern District of New York; James E. Dennehy, Assistant Director in Charge at the FBI's New York Field Office; and Harry T. Chavis, Jr., Special Agent-in-Charge at IRS-CI's New York Field Office.
United States Attorney Durham stated, "The defendant preyed on the Egyptian-American Coptic Christian community by falsely promising that his purported artificial intelligence-driven hedge fund would earn guaranteed annual returns of 30% or more, and taking advantage of their trust for his own personal gain." He emphasized that protecting individual investors is a priority for his office.
Durham also thanked the U.S. Securities and Exchange Commission’s New York Regional Office for its assistance in this case.
Harry T. Chavis, Jr., Special Agent in Charge of IRS-CI New York commented, "The only thing more artificial than Tadrus’ AI-driven hedge fund was his sincerity. He sold a dream to trusting investors and instead of turning their money into profit, he swindled it for his own luxuries."
Court documents reveal that Tadrus marketed interests in Tadrus Capital LLC with false promises about using artificial intelligence-driven trading strategies to achieve guaranteed annual returns exceeding 30%. Contrary to these claims, he did not engage in any such trading activities but used investor funds for personal expenses including luxury gifts and expensive meals while making Ponzi scheme-like payments to new investors.
Victims who were clients of Tadrus Capital LLC are encouraged to file complaints at www.iC3.gov referencing “Tadrus Capital” or “Mina Tadrus.”
The prosecution is being managed by the Business and Securities Fraud Section with Assistant United States Attorney John O. Enright and Special Agent Martin Sullivan leading the case with support from Paralegal Specialist Sarah Burn.
MINA TADRUS
Age: 38
Tampa, Florida
E.D.N.Y. Docket No. 23-CR-393 (HG)
