ThinkStrategy’s Kapur Free After Guilty Plea

Aug 23 2013 | 5:02am ET

Hedge fund manager Chetan Kapur has been freed from prison, after prosecutors dropped the most serious charges against him.

Kapur was sentenced to time served this week, a month after pleading guilty to one count of failing to keep adequate records. The ThinkStrategy Capital Management founder had been facing a whole host of more serious charges for fraud, but the government abandoned them after determining they didn’t have enough evidence to support them.

Kapur spent just over a year in prison awaiting trial before he was released on bail last month—rather than the 100 years he faced if convicted of the original charges. He had been accused of misleading investors in his once-$520 million fund of hedge funds firm, and of having due-diligence standards so lax that his hedge fund invested in three separate Ponzi schemes: Bayou Group, Arthur Nadel and Grant Grieve.

In December, Kapur was fined $5 million by the Securities and Exchange Commission.

At Monday’s hearing, Kapur said that he was “very upset” about the losses ThinkStrategy suffered, but maintained that he had gone into his own pocket to protect clients from losses.

“ThinkStrategy and I did not abandon investors, which we were legally entitled to do,” Kapur said. “Investors benefited at the expense of ThinkStrategy and me.”


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR