Tadrus Capital CEO Admits AI Hedge Fund Fraud in $5M Scam

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Sentencing Looms as Defense Pushes Back

Tadrus faces a theoretical sentencing range of seven to nine years, but the investment adviser fraud charge carries a maximum five-year prison term.

His attorney, Jeff Dahlberg of the Federal Defenders of New York, signaled that they may contest the government’s loss calculation and argue for a lower sentence.

For now, Tadrus remains free on a $100,000 bond, with a sentencing date yet to be set.

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The government is represented by Genny Ngai and John Enright of the U.S. Attorney’s Office for the Eastern District of New York.
Tadrus is defended by Allegra Glashausser and Jeffrey Dahlberg of the Federal Defenders of New York.

With investors left reeling and authorities cracking down, one thing is clear—Tadrus Capital’s AI hedge fund was nothing more than an algorithm of deception.