Mina Tadrus, the founder of a hedge fund purportedly driven by artificial intelligence, pled guilty to investment adviser fraud in Brooklyn's federal courthouse. Tadrus admitted to defrauding investors in Tadrus Capital LLC of over $5 million. United States District Judge Hector Gonzalez presided over the proceeding. The defendant, charged in September 2023, faces up to five years in prison.
John J. Durham, U.S. Attorney for the Eastern District of New York, announced the plea along with James E. Dennehy from the FBI and Harry T. Chavis, Jr., from IRS-CI's New York Field Office.
“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,” stated United States Attorney Durham.
Chavis added, “The only thing more artificial than Tadrus’ AI-driven hedge fund was his sincerity."
Court documents revealed that Tadrus misled investors with false promises of AI-driven trading strategies guaranteeing high returns. Instead of investing as promised, he used funds for personal luxuries and Ponzi-like payments.
Victims seeking redress are directed to file complaints at www.iC3.gov with references to "Tadrus Capital" or "Mina Tadrus." The prosecution is managed by Assistant U.S. Attorney John O. Enright and Special Agent Martin Sullivan.
MINA TADRUS
Age: 38
Tampa, Florida
E.D.N.Y. Docket No. 23-CR-393 (HG)