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LOS ANGELES — The founder and manager of two Beverly Hills hedge funds has pleaded guilty to federal fraud charges.
Bradley Ruderman pleaded guilty Monday to two counts of wire fraud, two counts of investment adviser fraud and a misdemeanor count of failing to file income taxes in 2007.
Prosecutors say Ruderman admitted to cheating investors, many of them family members, out of $25 million by promising annual returns as high as 60 percent and sending fake account statements.
An FBI investigation found Ruderman spent at least $8.7 million of investor money on personal expenses, like a summer rental in Malibu, two Porsches and poker games.
Ruderman faces a maximum sentence of 51 years in federal prison when he is sentenced December 7.
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