Friday, January 15, 2010

Beverly Hills Hedge Fund Manager Gets 10 Years for Operating Ponzi Scheme

Bradley Ruderman, the founder and manager of Ruderman Capital located in Beverly Hills, California, has been sentenced to 121 months in federal prison following his guilty plea in a fraud case against him. Ruderman was charged with running a Ponzi scheme that targeted family members and close friends. In total, the combined loss of all clients was more than $25 million.

Ruderman Capital operated two hedge funds, Ruderman Capital Partners and Ruderman Capital Partners A, which together collected more than $44 million from investors. Of this, Ruderman spent at least $8.7 million on personal expenses including a summer house in Malibu, sporting events, and almost $1 million in credit card charges. On multiple occasions he falsified client statements to mask that his failing venture and he grossly exaggerated the amount of money under his management.

In addition to his prison sentence, Ruderman was ordered to pay over $27 million in restitution to victims.

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