Hedge Fund Manager Charged With Securities Fraud

(CN) - ThinkStrategy's Chetan Kapur tricked investors into buying shares in his hedge funds through "false and misleading statements and material omissions," federal prosecutors claim in a seven-count indictment.

As ThinkStrategy's sole managing director, Kapur allegedly lied to get investors to buy into his ThinkStrategy Capital Fund and ThinkStrategy Multi-Strategy Fund.

Kapur was charged with securities fraud, investment adviser fraud and five counts of wire fraud.

The scheme lasted from 2002 to 2010, according to the indictment unsealed today by New York prosecutors.

In November, the Securities and Exchange Commission and Kapur agreed to settle claims that Kapur and ThinkStrategy Capital Management blew millions of the $250 million its investors had trusted it with on "Ponzi schemes and other serious frauds" and then lied about it.

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