LOS ANGELES (AP) -- 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.
...
The complaint said he lied about profits, repeatedly sent false account statements to investors and reported he had $206 million in funds under management after actually losing $3 million in 2008 and beginning 2009 with a net value of only $588,246.
If convicted, Ruderman faces a maximum of 20 years in federal prison.
http://finance.yahoo.com/news/Califorina-hedge-fund-manager-apf-15269860.html?sec=topStories&pos=2&asset=&ccode=How much you bet this is only the tip of the iceberg? I'm more willing to believe this goes to the very top of the government than ever before.
