LOS ANGELES (CN) - A Beverly Hills man defrauded his family and friends of $44 million by persuading them to invest in his two nearly worthless hedge funds and spent the money on a Malibu Beach home, Porsches, and poker, federal prosecutors say.
Bradley L. Ruderman, 46, quoted as a financial expert by national media, surrendered on Friday after being named in a criminal complaint charging him with fraud.
The complaint alleges that for 8 years Ruderman took in $44 million from 22 investors, mostly friends and family, by falsely promising annual returns of up to 60 percent through two hedge funds he founded and managed, Ruderman Capital Partners and Ruderman Capital Partners A.
Ruderman allegedly lied about profits and repeatedly sent false account statements to investors.
Prosecutors say Ruderman spent at least $8.7 million on personal expenses, including a summer rental in Malibu's Carbon Beach, and two Porsches. He also admitted losing $5.2 million on clandestine poker games in a suite at a high-end Beverly Hills hotel, according to an FBI agent's affidavit.
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