Saturday, 24 January 2015
Last updated 1 day ago
Jul 18 2012 | 2:11am ET
Hedge fund manager Chetan Kapur has been arrested and charged with defrauding investors in his ThinkStrategy Capital Management for eight years.
Kapur, who was picked up at New York's John F. Kennedy International Airport upon his arrival there on Monday, was indicted on securities fraud, investment adviser fraud and wire fraud. If convicted, he faces more than 100 years in prison.
The criminal charges read a lot like the civil charges laid against Kapur by the Securities and Exchange Commission last year. According to prosecutors, Kapur "deceived investors into purchasing shares in the ThinkStrategy Capital Fund and ThinkStrategy Multi-Strategy Fund through false and misleading statements and omissions."
ThinkStrategy and Kapur consented to the entry of a judgment in the SEC case without admitting or denying wrongdoing. Kapur told FINalternatives at the time that ThinkStrategy was wound down more than a year ago and that "all investors… were fully redeemed having received the reported returns." The SEC had alleged that not only was ThinkStrategy itself fraudulent, it was something of a fraud of frauds, investing in the Bayou Group, Arthur Nadel and Grant Grieve Ponzi schemes.
Yesterday's indictment does not mention those scams or offer any details of Kapur's alleged crimes. A federal magistrate ordered Kapur detained pending a June 25 arraignment.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…