SEC Charges Florida Resident in Connection with Ponzi Scheme Targeting Religious Community

The Securities and Exchange Commission (SEC) has officially filed a complaint against Mina Tadrus and Tadrus Capital LLC, connected to an alleged Ponzi scheme.

The SEC’s filed complaint outlines that, from at least September 2020, Mina Tadrus and Tadrus Capital LLC have been engaged in the solicitation and sale of investments related to Tadrus Capital Fund LP. This purported pooled investment vehicle was specifically targeted at members of the Egyptian Coptic Christian community. The defendants are accused of accumulating over $5 million from at least 31 investors. Allegedly, they falsely assured these investors that their funds would be collectively invested utilizing algorithmic trading, ensuring a consistent monthly return on investment (ROI). However, the complaint asserts that the defendants failed to genuinely invest the investors’ funds. Instead, they purportedly used a minimum of $1.4 million to make ROI payments to other investors using a Ponzi scheme approach. Additionally, they are believed to have misappropriated at least $380,000.

The complaint, officially submitted in the U.S. District Court for the Eastern District of New York, charges Mina Tadrus and Tadrus Capital LLC with violations of the antifraud provisions under Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Furthermore, they are charged with violations of Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940, alongside Rule 206(4)-8 thereunder. In response, the SEC is pursuing preliminary and permanent injunctive measures, disgorgement, and imposition of civil penalties against both defendants. Additionally, a conduct-based injunction and an officer-and-director bar against Mina Tadrus are being sought.

This legal action exemplifies the SEC’s commitment to safeguarding investors and maintaining the integrity of the financial markets.