Posted on 05/16/2009 6:48:33 AM PDT by arbooz
LOS ANGELES – A Beverly Hills hedge fund manager was arrested Friday on a charge he bilked investors out of $44.3 million, including $5 million he lost playing poker, the U.S. attorney's office said.
Bradley L. Ruderman, 46, surrendered to FBI agents after being named in a wire fraud complaint. He was later released on $500,000 bond.
The government alleges he spent at least $8.7 million of investor money on personal expenses including a summer rental of a Malibu beach home and two Porsches. He admitted in an FBI interview that he lost $5.2 million of investor money in poker games held in a Beverly Hills luxury hotel suite, the U.S. attorney's office said in a statement.
(Excerpt) Read more at news.yahoo.com ...
If he had won in the poker games, would he have taken a 20% fee and given the rest of the winnings to the investors?
Does this mean we can expect our Senators arrested soon?
The winner of that game is probably rather flush with happiness.
Must be Bush’s fault.
On the other hand, poker could be a good way to move money around in a laundering scheme.
I swear to god, for all the regulations and insane hoops one has to keep jumping through to be in the financial industry, it pretty much comes down to the simple “don’t lie, cheat and steal”. Is that too much to ask for chrissakes !? And, seriously, if they’re making 100s of thousands of dollars in fees annually, WHY, for the love of Pete, would one want to go to federal prison !?
The 99% of honest money managers get a bad name due to the a$$holes like this. In the good ole days (1900s) at least they had the decency to jump off a building and save us the trouble of prosecuting and imprisoning their asses for next couple of decades.
The lines between Democrats and RINOS are indeed blurred. All in all, it's the working taxpayer who is really getting gored, with multiple taxes applied to the fruits of his/her labor and investments in capitalism being siphoned off to indulge the elites.
“The 99% of honest money managers ...”
Given the widespread fraud in the mortgage industry by originators, aggregators, ratings agencies, investment bankers I would question the 99% figure.
It's always been like this throughout history. Things never change, they just move around in a spiral/circle with variations.
Curious minds want to know who the poker players were who won those millions.
He's not so much different than the rest of the hedge fund people then.
Tilt, tilt, does not compute, a hedge fund manager and a bookie are about the same thing, they just take the drag, the money investor all ways loses in the end, but the house anyways gets it drag. In short hedge funds belong in Vegas!!! If Vegas would have them, hedge funds maybe a bit too dishonest!!
"The 99% of honest murderers get a bad name due to the a$$holes like this."
The Law does not do enough to Con men.
If there is one thing we have learned about the current financial mess, it is the falsehood of your statement above. I suspect the numbers should be inverted.
Securities and Exchange Commission v. Bradley L. Ruderman, Ruderman Capital Management, LLC, Ruderman Capital Partners, LLC, and Ruderman Capital Partners A, LLC, Civil Action No. CV 09-02974 VBF (JCx) (C.D. Cal.)SEC HALTS BEVERLY HILLS HEDGE FUND FRAUD
On April 29, 2009, the Securities and Exchange Commission obtained a court order halting a hedge fund fraud based in Beverly Hills, California. The SEC's complaint, filed in federal court in Los Angeles, alleges that Bradley L. Ruderman ("Ruderman") raised at least $38 million from about twenty investors since at least 2002 through his two hedge funds, Ruderman Capital Partners and Ruderman Capital Partners A. The SEC alleges that Ruderman defrauded his hedge fund investors by misrepresenting to them the hedge funds' investment returns and the assets under management.
Specifically, the SEC's complaint alleges that Ruderman falsely told investors that the hedge funds had earned positive returns from 15% to 60% per year and had over $800 million in assets. In reality, the hedge funds lost money and had less than $650,000 in assets. The complaint further alleges that in 2009, Ruderman made at least one Ponzi-like payment, using new investor money to pay returns to an earlier investor, and that Ruderman falsely told prospective investors that Lowell Milken (chairman of the Milken Family Foundation and Michael Milken's younger brother) and Larry Ellison (the CEO of Oracle Corporation) were investors in his hedge funds.
The Honorable Valerie Baker Fairbank, U.S. District Judge for the Central District of California, granted the SEC's request for emergency relief, including an order temporarily enjoining Ruderman, his company Ruderman Capital Management ("RCM"), and the hedge funds from future violations of the antifraud provisions, freezing their assets, and prohibiting the destruction of documents. The Commission also seeks preliminary and permanent injunctions, disgorgement, and civil penalties against all defendants. A hearing on whether a preliminary injunction should be issued against the defendants and whether a permanent receiver should be appointed is scheduled for May 7, 2009, at 1:30 p.m. PDT.
SEC Complaint (PDF)
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