In a dramatic end to a tangled web of false promises and fabricated technology, a Brooklyn federal judge has approved a Bogus AI $4.1M SEC Deal with a Florida man who pretended to helm an AI-powered hedge fund—only for the Justice Department to reveal his firm was little more than smoke, mirrors, and doctored buzzwords.
SEC Says Ill-Gotten Gains Top $4 Million
U.S. District Judge Frederic Block entered the final consent judgment Friday against Mina Tadrus, CEO of Tadrus Capital LLC, concluding that his profits from the scheme exceeded $4 million, with an additional $72,000 in prejudgment interest. The judge confirmed that the SEC settlement will be fully satisfied by the restitution Tadrus owes in a parallel criminal case.
That earlier criminal case ended with a 30-month prison sentence for Tadrus in August—followed by two years of supervised release—after he pled guilty to investment adviser fraud.
Judge Block reaffirmed the prior partial consent judgment issued in August, imposing a sweeping officer-and-director ban and prohibiting Tadrus from participating in the issuance, purchase, or sale of securities for any company he owns or controls.
