Wednesday, 30 July 2014
Last updated 22 min 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…