Judge Orders Assets Transferred to Court
The Friday order directs the immediate transfer of remaining Tadrus Capital funds held by Brex Inc., First Internet Bank of Indiana, and assets deposited in the Court Registry Investment System. The transfers will be used to satisfy the restitution imposed in the criminal matter.
In the SEC’s consent filing, the regulator highlighted Tadrus’ sworn admissions from the criminal case. The agreement also bars Tadrus from claiming later that he admitted nothing—closing the door to future denials.
The False AI Narrative That Hooked Investors
The SEC’s September 2023 complaint laid out a breathtaking tale of deception. Tadrus, based in Tampa, launched Tadrus Capital in 2020 and marketed it as the general partner of an investment vehicle—Tadrus Capital Fund LP—that supposedly deployed proprietary “artificial intelligence-based high-frequency trading models™.”
He claimed those AI systems could deliver annual returns as high as 30%, branding the fund as the “world’s first private high-yielding and fixed-income quantitative hedge fund.”
Investors bought the story. Tadrus raised $5 million.
But according to the regulator, nearly none of that money ever saw a real investment platform. Instead, Tadrus used $1.8 million to pay earlier investors in the classic pattern of a Ponzi scheme—disguised as “guaranteed” monthly returns. The rest fed his lifestyle: salaries, personal expenses, and even his own credit card debts.
