Home Alts News SEC Shuts Down Alleged Multimillion Dollar Ponzi Scheme

SEC Shuts Down Alleged Multimillion Dollar Ponzi Scheme

SEC Shuts Down Alleged Multimillion Dollar Ponzi Scheme. SEC, adviser, broker, broker-dealer, financial services, investment adviser, RIA

The Securities and Exchange Commission obtained a preliminary injunction against Mina Tadrus and Tadrus Capital LLC in relation to an alleged Ponzi scheme.

The injunction, among other things, prohibits the defendants from violating the charged antifraud provisions of the federal securities laws and imposes an asset freeze pending a final resolution of the matter.

The SEC’s complaint alleges, since at least September 2020, that Tadrus and Tadrus Capital 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. However, the complaint alleges, the defendants did not actually invest the investors’ funds as promised. 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 charges Mina Tadrus and Tadrus Capital LLC with violating SEC Rules. The SEC is seeking permanent injunctive relief, disgorgement, and civil penalties against both defendants, and a conduct-based injunction and officer-and-director bar against Mina Tadrus.

Click here to visit The DI Wire directory page.