Earlier today in Brooklyn federal court, Mina Tadrus was sentenced to 30 months in prison for investment adviser fraud involving more than $5.7 million. United States District Judge Hector Gonzalez also ordered Tadrus to pay $4,224,850 in restitution. Tadrus pleaded guilty to the charges in February 2025.
The sentencing was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge at the FBI’s New York Field Office; and Harry T. Chavis, Jr., Special Agent in Charge at IRS Criminal Investigation New York.
“The defendant traded on excitement over the newest AI technology to trick investors to invest millions with his hedge fund. In the end, he perpetrated one of the oldest frauds in the book,” stated United States Attorney Nocella. “Today’s sentence serves as a reminder to all investment advisors that your clients place great faith in you to truthfully manage their investments, nest-eggs, and retirement savings. Our Office is committed to protecting the investing public, vindicating the rights of victims of economic crime, and prosecuting those who undermine the stability of our economy.”
Nocella also acknowledged assistance from the U.S. Securities and Exchange Commission’s New York Regional Office.
“Mina Tadrus shamelessly lied to investors of his hedge fund - many of whom were friends and family - preying on their trust to defraud them out of more than $5 million. Today, Tadrus learned that his scheme resulted not in wealth, but prison time. Ensuring fraudsters are held accountable in the criminal justice system is essential to the FBI's work on behalf of the American people,” stated FBI Assistant Director in Charge Raia.
“While Tadrus sold a dream of high-profits to his investors, the only return they saw was the negative result of being swindled by someone they trusted. Today’s sentence and imposed restitution sees that Tadrus will spend real time behind bars and pay for his crimes. This new reality is not AI generated," stated IRS-CI New York Special Agent in Charge Chavis.
According to court filings, Mina Tadrus founded Tadrus Capital LLC in June 2020 after working as a stockbroker registered with FINRA and as a derivatives consultant for a global financial institution. He claimed that his hedge fund used artificial intelligence-based trading models capable of guaranteeing up to 30% annual returns and described it as “the world’s first private high-yielding and fixed-income quantitative hedge fund.” However, there was no use of AI-based algorithmic trading at any point.
Tadrus falsely advertised that his fund was “recession-proof” with access to $5.5 billion in purchasing power and maintained liquidity accordingly.
Between September 2020 and July 2023, at least 31 individuals—mainly family members, friends, and members of the Egyptian-American Coptic Christian community—invested over $5.7 million into Tadrus Capital LLC. Less than one percent went toward legitimate investment activities; none involved AI-based algorithmic trading as promised by Tadrus. Instead, about $1.7 million from investor funds were used by him both for paying other investors monthly returns he had falsely promised as well as covering personal expenses for himself and employees.
The case was prosecuted by Assistant United States Attorney Jonathan P. Lax from the Business and Securities Fraud Section.
Mina Tadrus is 38 years old and resides in Tampa, Florida.
