Wednesday, 27 May 2015
Last updated 5 hours ago
May 18 2009 | 12:07pm ET
A Beverly Hills, Calif., hedge fund manager was arrested Friday and charged with defrauding investors of $44 million.
Bradley Ruderman was charged with wire fraud. The Ruderman Capital Partners chief surrendered to the Federal Bureau of Investigation last week; if convicted, he faces up to 20 years in prison.
According to prosecutors, Ruderman lied to prospective investors, including friends and family members, to attract them to his hedge fund. And the complaint alleges the lying didn’t stop there: Ruderman lied about profits, sent bogus account statements to investors and lied about the hedge fund’s assets under management, inflating it 350-fold. Investors, however, were brought face-to-face with the stark truth last month, when they got a letter telling them that Ruderman’s two hedge funds were “nearly worthless.”
The criminal complaint follows a civil complaint filed last month by the Securities and Exchange Commission. Federal prosecutors in Los Angeles say he raised $44.3 million from 22 investors over the past eight years, and ran his scheme from 2002 until its collapse earlier this year. Ruderman allegedly told investors he was managing $206 million and reported returns of almost 60%. In fact, authorities say, he lost more than $3 million last year and began this year with just $588,246 in the funds.
Ruderman admitted that he lost some $5.2 million of investor money in clandestine poker games, according to a press release from the U.S. Attorney’s Office for the Central District of California. The FBI says he also misappropriated at least $8.7 million for personal expenses, including a pair of Porsches and a summer rental in Malibu, Calif.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…