Tarred by the Raj Rajaratnam insider-trading scandal, hedge fund New Castle Funds is moving to distance itself from its indicted co-founder and to reassure investors.

The New York-based firm this week announced plans to reorganize, founding a new management company—without ties to Mark Kurland, who along with former New Castle consultant Danielle Chiesi faces fraud charges—to run its hedge funds. The firm is also offering a big fee cut to try to keep worried investors on board.

“Many of you have expressed a desire to continue to have us continue to manage your assets, provided that you can be assured that they are safe and are not going to be frozen, seized or ‘clawed back’ by the government or some other third party,” New Castle’s two unindicted founders, Robert Reitzes and Scott Merves, wrote.

To that end, the former Bear Stearns hedge fund will launch a new management company and new funds, transferring its current funds’ assets to the new ones by the beginning of next year. The firm also promised to change its high-water marks to account for the $10 million in fund assets it has set aside for legal defense, and said that it would not be paying Kurland’s legal bills. Kurland is currently on a leave of absence from the firm, and has agreed to pay up to $9 million to cover any damages assessed against New Castle.

The new New Castle is also a cheaper New Castle: The firm is cutting its management fees from 1.5% to 1%, a change that will be permanent for investors who stick with the firm. For new investors, it promises no lock-up periods or redemption fees.

The hedge fund also said it would meet all redemption requests. The firm, which has seen its assets under management drop by almost 40% to $625 million since the beginning of the year, has been hit with a lot of them, and seen a fund it managed for Union Bancaire Privée shuttered.