Ruderman Capital Partners and Ruderman Capital Partners A, hedge funds operated by Bradley L. Ruderman in Beverly Hills were frozen by Judge Valerie Baker Fairbank for allegedly scamming its investors worth least $38M.
The Securities and Exchange Commission alleged that Ruderman induced several investors to invest under false pretenses. The commission is seeking injunctions to prevent Ruderman from continuing to operate his funds, repayment for investors and financial penalties against Ruderman and his funds.
The complaint against Ruderman stated that famous names such Oracle Corp. Chief Executive Larry Ellison were used and claimed that investment returns are as high as 60% through positions in well-known companies such as Apple Inc., Microsoft Corp. and Wal-Mart Stores Inc when in fact, the scheme was losing millions of dollars already.
From 2002 to 2009, 20 investors were told that the two hedge funds held more than $800 million in assets but as of March 31, the funds were valued at $387,000. Quarterly account statements were also submitted to investors stating false returns on investments at rates of 60% to 15% from 2002 to 2008.
The scam was revealed on April 15 when investors got a letter from Ruderman's attorney sent investors a letter that informed them that there is currently very little value in the assets held by the hedge funds.
The civil complaint alleged that Ruderman was willing to say or do anything to persuade investors to entrust their money to him and that the fabricated account statements presented a rosy picture for investors who instead of getting significant gains, may experience major losses.
Civil litigation in case of fraud and misrepresentation in business transactions like this is the best action to take in pursuing your claims to protect your legal rights.
The Securities and Exchange Commission alleged that Ruderman induced several investors to invest under false pretenses. The commission is seeking injunctions to prevent Ruderman from continuing to operate his funds, repayment for investors and financial penalties against Ruderman and his funds.
The complaint against Ruderman stated that famous names such Oracle Corp. Chief Executive Larry Ellison were used and claimed that investment returns are as high as 60% through positions in well-known companies such as Apple Inc., Microsoft Corp. and Wal-Mart Stores Inc when in fact, the scheme was losing millions of dollars already.
From 2002 to 2009, 20 investors were told that the two hedge funds held more than $800 million in assets but as of March 31, the funds were valued at $387,000. Quarterly account statements were also submitted to investors stating false returns on investments at rates of 60% to 15% from 2002 to 2008.
The scam was revealed on April 15 when investors got a letter from Ruderman's attorney sent investors a letter that informed them that there is currently very little value in the assets held by the hedge funds.
The civil complaint alleged that Ruderman was willing to say or do anything to persuade investors to entrust their money to him and that the fabricated account statements presented a rosy picture for investors who instead of getting significant gains, may experience major losses.
Civil litigation in case of fraud and misrepresentation in business transactions like this is the best action to take in pursuing your claims to protect your legal rights.
