Mina Tadrus; Tadrus Capital LLC
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25798 / August 2, 2023
Securities and Exchange Commission v. Mina Tadrus et al., No. 1:23-cv-05708 (E.D.N.Y. filed July 28, 2023)
SEC Charges Florida Resident in Connection with Ponzi Scheme Targeting Religious Community
On July 28, 2023, the Securities and Exchange Commission filed a complaint against Mina Tadrus and Tadrus Capital LLC related to an alleged Ponzi scheme.
The SEC's complaint alleges that, since at least September 2020, Mina Tadrus and Tadrus Capital LLC have solicited and sold investments in Tadrus Capital Fund LP, a purported pooled investment vehicle that targeted members of the Egyptian Coptic Christian community. The defendants allegedly raised more than $5 million from at least 31 investors and falsely told them that their funds would be pooled and invested using algorithmic trading that would guarantee a steady monthly return on investment (ROI). However, the complaint alleges, the defendants did not actually invest the investors' funds. In reality, according to the complaint, the defendants used at least $1.4 million to make purported ROI payments to other investors in Ponzi fashion and otherwise misappropriated at least $380,000.
The complaint, filed in the U.S. District Court for the Eastern District of New York, charges Mina Tadrus and Tadrus Capital LLC with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC is seeking preliminary and permanent injunctive relief, disgorgement, and civil penalties against both defendants, and a conduct-based injunction and officer-and-director bar against Mina Tadrus.
The SEC's investigation was conducted by John Lehmann, Doreen Rodriguez, Abigail Rosen, and Lindsay S. Moilanen, and supervised by Tejal D. Shah. The litigation is being handled by Ms. Rosen and Mr. Lehmann.