Hedge fund manager Bradley Ruderman surrenders to FBI

Ruderman's surrender came two weeks after a federal judge shut down his hedge funds, Ruderman Capital Partners and Ruderman Capital Partners A, in response to a civil suit filed by the Securities and Exchange Commission. The commission alleged that Ruderman raised the money for his funds by claiming returns as high as 60% through stakes in high-profile companies such as Apple Inc., Microsoft Corp. and Wal-Mart Stores Inc.

The FBI filed its affidavit naming Ruderman on Thursday. In court documents, the FBI said its investigation revealed that Ruderman, 46, spent at least $8.7 million of investor money on personal expenses, including a summer rental on Malibu's Carbon Beach and two Porsches.

Ruderman admitted that he lost $5.2 million of investor money in clandestine poker games held on a regular basis in a suite at a Beverly Hills luxury hotel, documents said.