Earlier today, Mina Tadrus was sentenced to 30 months in prison by United States District Judge Hector Gonzalez in federal court in Brooklyn. Tadrus was convicted of investment adviser fraud involving more than $5.7 million connected to a scheme that defrauded investors in his hedge fund, Tadrus Capital LLC. The hedge fund claimed to use artificial intelligence-based algorithmic trading models. In addition to the prison sentence, Tadrus was ordered to pay restitution of $4,224,850. He pleaded guilty in February 2025.
The sentencing was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge at the FBI’s New York Field Office; and Harry T. Chavis, Jr., Special Agent in Charge at IRS Criminal Investigation New York.
“The defendant traded on excitement over the newest AI technology to trick investors to invest millions with his hedge fund. In the end, he perpetrated one of the oldest frauds in the book,” stated United States Attorney Nocella. “Today’s sentence serves as a reminder to all investment advisors that your clients place great faith in you to truthfully manage their investments, nest-eggs, and retirement savings. Our Office is committed to protecting the investing public, vindicating the rights of victims of economic crime, and prosecuting those who undermine the stability of our economy.”
Nocella also acknowledged assistance from the U.S. Securities and Exchange Commission’s New York Regional Office.
“Mina Tadrus shamelessly lied to investors of his hedge fund – many of whom were friends and family – preying on their trust to defraud them out of more than $5 million. Today, Tadrus learned that his scheme resulted not in wealth, but prison time. Ensuring fraudsters are held accountable in the criminal justice system is essential to the FBI’s work on behalf of the American people,” stated FBI Assistant Director in Charge Raia.
“While Tadrus sold a dream of high-profits to his investors, the only return they saw was the negative result of being swindled by someone they trusted. Today’s sentence and imposed restitution sees that Tadrus will spend real time behind bars and pay for his crimes. This new reality is not AI generated,” stated IRS-CI New York Special Agent in Charge Chavis.
According to court filings, Tadrus previously worked as a stockbroker registered with FINRA and as a derivatives consultant for an international financial institution before founding Tadrus Capital LLC in June 2020. He marketed it as “the world’s first private high-yielding and fixed-income quantitative hedge fund” using AI-driven high-frequency trading models that would guarantee up to 30% annual returns for investors. However, there were no actual AI-based algorithmic trading activities taking place within the firm.
Tadrus also made false claims about his company being “recession-proof” and having access to $5.5 billion for liquidity purposes.
Between September 2020 and July 2023, at least 31 people—mainly family members, friends, and individuals from Tampa’s Egyptian-American Coptic Christian community—invested more than $5.7 million with Tadrus Capital LLC based on these representations. Less than one percent of those funds went toward legitimate investments; none involved any AI-based trading activity as promised by Tadrus.
Instead, approximately $1.7 million from investor funds were used either as payouts falsely presented as monthly returns or for personal expenses benefiting himself or others involved with him.
The case was prosecuted by Assistant United States Attorney Jonathan P. Lax from the Business and Securities Fraud Section.
MINA TADRUS
Age: 38
Tampa, Florida
E.D.N.Y Docket No.: 23-CR-393 (HG)
