SEC obtains preliminary injunction against Tadrus Capital
The Securities and Exchange Commission (SEC) has obtained a preliminary injunction against Mina Tadrus and Tadrus Capital LLC.
The relevant order was signed by Judge Frederic Block of the New York Eastern District Court on August 22, 2023.
The Court ordered that, pending a final disposition of this action, the defendants are permanently restrained and enjoined from violating Section l 7(a) of the Securities Act [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly:
- (a) to employ any device, scheme, or artifice to defraud;
- (b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or
- (c) to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser.
The SEC filed a lawsuit against Tadrus in July 2023. The complaint alleges that Tadrus and Tadrus Capital—respectively, the founder and chief executive officer of an eponymous investment advisory firm and the firm itself—engaged in a multimillion-dollar Ponzi scheme.
Since at least September 2020, Tadrus has solicited and sold investments in Tadrus Capital Fund LP – a purported pooled investment vehicle. Defendants raised over $5 million from at least 31 investors.