Fund Chief Indicted on Multiple Fraud Charges

The manager of a New York-based investment fund was indicted on charges of giving away $9.5 million of his investors’ money to a Ponzi scheme artist. The managing partner of a fund ironically titled ThinkStrategy Capital, Chetan Kapur was accused of “a pattern of deceptive conduct” last year by federal regulators. He was charged with four counts of wire fraud and related investment fraud when arrested by the FBI last week.

ThinkStrategy apparently put no thinking into investing with Arthur Nadel, who died in a North Carolina prison recently at age 79 after his fraudulent  funds collapsed in 2009. Nadel’s Florida-based hedge funds bilked investors out of $529 million.

“The SEC claimed Kapur falsely told investors he conducted ‘rigorous’ examinations of the hedge funds where they risked money,” according to John Hielscher in the Sarasota, Fla.’s Herald-Tribune. “The agency said Kapur and his firm never performed a background check on Nadel, which would have revealed Nadel was a disbarred attorney with little investment experience.”

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