Friday, 1 July 2016
Last updated 20 min ago
Jul 28 2009 | 9:23am ET
A Beverly Hills hedge fund manager has settled charges of fraud with the Securities and Exchange Commission.
Bradley Ruderman of Ruderman Capital Management, an unregistered investment adviser, was arrested in May and charged with wire fraud. Ruderman alleged raised some $38 million from investors through his two hedge funds and defrauded his investors by lying to them about the hedge funds’ investment returns and the assets under management.
He told investors that hedge funds that he controlled had earned positive returns between 15% and 60% per year and had over $800 million in assets, the SEC charged. In reality, the hedge funds lost money and had less than $650,000 in assets. The SEC’s complaint further alleges that in 2009, Ruderman made at least one Ponzi scheme-like payment, using new investor money to pay returns to an earlier investor, and that Ruderman lied to prospective investors telling them that Lowell Milken and Oracle Corp. CEO Larry Ellison were investors in his hedge funds.