US fund manager has assets frozen in fraud case

A federal judge froze the assets of a Beverly Hills hedge fund manager accused by the Securities Exchange Commission of duping investors out of $38 million by misleading them about his funds' performance, the commission said in a statement. US District Judge Valerie Baker Fairbank's injunction on Wednesday also prohibited Bradley L. Ruderman from destroying any documents connected to the fraud complaint and from any future violations of US antifraud provisions. Ruderman and his firm, Ruderman Capital Management, are accused of telling investors that its two hedge funds held more than $800 million in assets when they actually had less than $700,000, according to the SEC complaint. Ruderman gave the funds' approximately 20 investors misleading account statements between 2002 and 2009 that showed consistent yearly gains, while millions were being lost, the SEC said.