ThinkStrategy Capital Management's Chetan Kapur avoided prison Wednesday when he was sentenced to time served on allegations that he gave investors false information about his hedge fund returns after the government couldn't find evidence to support the claims.
Bloomberg Businessweek reported that Kapur was sentenced by U.S. District Judge John F. Keenan in federal court in Manhattan to the 12 1/2 months he already spent in custody. He was charged last year with seven counts of securities fraud, investment adviser fraud, and wire fraud which led to significant losses at his funds from 2002 to 2010.
The U.S. Securities and Exchange Commission accused Kapur of misleading investors about his fund’s track records and invested with fraudulent funds without conducting proper due diligence. The hedge fund manager pleaded guilty last month to one count of failing to keep adequate records.
The SEC said that ThinkStrategy managed about $520 million in assets at its peak in 2008.