Source: Office of United States Attorneys
Defendant Victimized Friends, Family, and Members of the Egyptian-American Coptic Christian Community in a $5.7 Million Ponzi Scheme
Earlier today, in federal court in Brooklyn, Mina Tadrus was sentenced by United States District Judge Hector Gonzalez to 30 months in prison for committing investment adviser fraud of more than $5.7 million in connection with a scheme to defraud investors in Tadrus Capital LLC, a hedge fund Tadrus founded and operated that purported to use artificial intelligence-based algorithmic trading models. As part of the sentence, Tadrus was also ordered to pay restitution of $4,224,850. Tadrus pleaded guilty in February 2025.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York) announced the sentence.
“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.”
Mr. Nocella expressed his appreciation to the U.S. Securities and Exchange Commission’s New York Regional Office for its assistance in this matter.
“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.
As set forth in court filings, Tadrus, a former stockbroker registered with the Financial Industry Regulatory Authority (FINRA) and derivatives consultant for a global financial institution, founded Tadrus Capital LLC in June 2020. Tadrus claimed to operate “the world’s first private high-yielding and fixed-income quantitative hedge fund” powered by artificial intelligence (AI) high-frequency trading models to guarantee investors up to 30% returns annually. In reality, Tadrus used no AI-based algorithmic trading. Tadrus also falsely claimed that Tadrus Capital was “recession-proof” and maintained liquidity with access to $5.5 billion in purchasing power.
Between September 2020 and July 2023, at least 31 individuals—predominantly Tadrus’s family, friends, and members of the Egyptian-American Coptic Christian community—invested more than $5.7 million with Tadrus Capital. Less than one percent of the investor funds were used for legitimate investment activities and none of those activities included the promised AI-based algorithmic trading. Instead, Tadrus used approximately $1.7 million of investor funds both to pay other investors the monthly returns he had falsely promised, and to pay himself, his employees, and his personal expenses.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Jonathan P. Lax is in charge of the prosecution.
The Defendant:
MINA TADRUS
Age: 38
Tampa, Florida
E.D.N.Y. Docket No. 23-CR-393 (HG)