The Securities and Exchange Commission (SEC) filed a lawsuit against the defendants, Mina Tadrus and Tadrus Capital LLC。

The complaint, filed in the Eastern District Court of New York, alleges that Tadrus and Tadrus Capital were involved in a multimillion-dollar Ponzi scheme.。

Since at least September 2020, Tadrus has been soliciting and selling investments in Tadrus Capital Fund LP - an alleged pooled investment vehicle, with the defendants raising more than $5 million from at least 31 investors.。

Tadrus misled investors that their funds would be pooled and invested in "the world's first private high-yield and fixed-income quantitative hedge fund," using "an AI-based high-frequency trading model" that "investors pay 1 on the first day of each month.".5% or 2.5% interest, annual return on investment of 18% or 30% "。

In fact, the defendant did not invest the vast majority of investors "money。

Instead, they used a large portion of the investor's money for Tadrus's personal benefit - transferring the money directly to Tadrus and paying his personal credit card bill, and making Ponzi payments - telling the investor it was a "margin" for the monthly return on investment.。

Overall, the defendants used approximately $1,431,900 of investor funds to pay investors a "guaranteed" monthly return on their investments during the relevant period, which exceeded $275,000 in June 2023 alone, and further misappropriated at least $383,267..$93 investor funds for Tadrus own benefit。

The Committee's Final Judgment:

• (a) permanently prohibit the defendant from violating the federal securities laws and rules charged in this complaint;
  (b) under sections 21 (d) (3), 21 (d) (5) of the Exchange Act, order the defendant to surrender all illicit proceeds received as a result of the alleged offence and to pay pre-judgment interest, and 21 (d) (7) [15 U.S.C.§ § 78u (d) (3), 78u (d) (5) and 78u (d) (7)];
  (c) under section 20 (d) of the Securities Act [15 U.S.C.§ 77t (d)], section 21 (d) (3) of the Exchange Act [15 U.S.C.§ 78u (d) (3)], and section 209 (e) of the Consultants Act [15 U.S.C.§ 80b-9 (e)];
  (d) permanently prohibit Tadrus from acting as any person under section 12 of the Exchange Act [15 U.S.C.§ 78l] or pursuant to section 15 (d) of the Exchange Act [15 U.S.C.§ 78o (d)], pursuant to section 20 (e) of the Securities Act [15 U.S.C.§ 77t (e)] and section 21 (d) (2) of the Exchange Act [15 U.S.C.§ 78u (d) (2)];
  (e) permanently prohibit Tadrus from participating, directly or indirectly (including without limitation, through any entity owned or controlled by Tadrus), in the issuance, purchase, offer or sale of any securities, provided that such prohibition does not prevent Tadrus from purchasing or selling securities for his personal account;
  (f) Order the court for further relief。