Former hedge fund manager Mina Tadrus was today sentenced to 30 months in federal prison for orchestrating a $5.7 million investment fraud. United States District Judge Hector Gonzalez handed down the sentence, which also includes restitution of $4,224,850. The Brooklyn court heard that Tadrus, who founded Tadrus Capital LLC, claimed his fund used artificial intelligence to guarantee high returns, but instead used investor funds for personal gain.
The United States Attorney for the Eastern District of New York, Joseph Nocella Jr., pointed out that Tadrus exploited investors’ excitement over AI technology to defraud them. ‘In the end, he perpetrated one of the oldest frauds in the book,’ said Nocella. He emphasized the importance of protecting investors and prosecution of those who undermine economic stability.
FBI Assistant Director Christopher G. Raia highlighted the role of trust in financial fraud. ‘Mina Tadrus shamelessly lied to his investors, many of whom were friends and family, preying on their trust,’ Raia stated. The FBI is committed to holding fraudsters accountable.
Harry T. Chavis Jr., Special Agent in Charge of IRS-CI New York, noted the impact of Tadrus’ actions on investors. ‘While Tadrus sold a dream of high profits, his scheme resulted only in the swindling of those who trusted him,’ Chavis said.
Court filings reveal that Tadrus claimed to operate ‘the world’s first private high-yielding and fixed-income quantitative hedge fund’ with AI-powered trading models. In reality, he used less than one percent of investor funds for legitimate investment activities and the rest was used to pay himself and others.
Mina Tadrus, age 38 from Tampa, Florida, is facing these charges after pleading guilty in February 2025. Assistant United States Attorney Jonathan P. Lax heads the prosecution in this case.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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