The Securities and Exchange Commission today obtained a court order halting a fraudulent scheme in Beverly Hills, Calif., in which investors were coaxed into investing in two hedge funds that purportedly held more than $800 million in assets when in fact the funds lost money and have less than $1 million in assets.
The SEC alleges that Bradley L. Ruderman raised at least $38 million from investors through his two hedge funds, Ruderman Capital Partners and Ruderman Capital Partners A. Through fake and misleading account statements, Ruderman assured investors that the hedge funds had earned positive returns as high as 60 percent per year. He falsely claimed that the funds held positions in well-known securities such as Apple, Microsoft Corp., Qualcomm, and Wal-Mart Stores, and he obtained money from at least one investor by claiming that some prominent people were investors in his funds when in fact they were not.
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