SEC Secures Preliminary Injunction Related to Alleged AI Investment Scam
Summary
On August 22, 2023, the Securities and Exchange Commission (SEC) secured a preliminary injunction against Mina Tadrus and Tadrus Capital LLC in connection with an alleged Ponzi scheme that targeted members of a religious community. The SEC’s complaint alleges that the defendants told investors their funds would be invested in a hedge fund using "artificial intelligence-based high-frequency trading models,” ultimately raising more than $5 million. Among other things, the SEC is seeking permanent injunctive relief, disgorgement, and civil penalties against both defendants.
Impacted Sectors
Additional Information
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