Hedge Fund Principal Charged In Manhattan Federal Court With Securities Fraud, Investment Adviser Fraud And Wire Fraud
FOR IMMEDIATE RELEASE
Tuesday July 17, 2012
Preet Bharara, the United States Attorney for the Southern District of New York, and Janice K. Fedarcyk, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”) announced today that CHETAN KAPUR, the sole managing principal of ThinkStrategy Capital Management, LLC, was charged in a seven-count Indictment with securities fraud, investment adviser fraud, and wire fraud. He was arrested last night and presented today in Manhattan federal court before U.S. Magistrate Judge Frank Maas.
According to the Indictment unsealed today:
KAPUR was the sole managing principal of ThinkStrategy Capital Management, LLC, a Delaware limited liability company with its principal place of business located in New York, New York. KAPUR managed and advised two hedge funds that each utilized two share classes: ThinkStrategy Capital Fund-A and ThinkStrategy Capital Fund-B (collectively, the “ThinkStrategy Capital Fund”), and TS Multi-Strategy Fund-A and TS Multi-Strategy Fund-B (collectively, the “ThinkStrategy Multi-Strategy Fund”).
In connection with the marketing and management of the ThinkStrategy Capital Fund and the ThinkStrategy Multi-Strategy Fund, KAPUR and ThinkStrategy deceived investors by making false and misleading statements and material omissions, and also by disseminating false and misleading information to the investors. The information included misrepresentations about the prior and current performance, longevity, assets, personnel, and due diligence of ThinkStrategy’s managed funds.
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The Indictment charges KAPUR, 37, of New York, New York, with one count of securities fraud, one count of investment adviser fraud, and five counts of wire fraud. He faces a maximum sentence of 125 years in prison. KAPUR’s next appearance is scheduled for July 25, 2012 at 10:30 a.m. before U.S. District Judge John Keenan.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission’s Asset Management Unit for their assistance.
This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Bonnie Jonas and Marissa Molé Bostick are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.