Federal prosecutors have agreed to drop all but one charge against hedge fund owner Chetan Kapur, who was accused last year of misleading investors about the assets and performance history of his fund, ThinkStrategy. Kapur was arrested in July 2012 and charged with securities fraud, investment adviser fraud and wire fraud. Investors in ThinkStrategy suffered losses during the market collapse of 2007 and 2008, partly because Kapur had invested some of their money with Arthur Nadel, a fund manager later found to be running a Ponzi scheme.
The Southern District U.S. Attorney's Office has agreed to dismiss all counts against Kapur except for one count of failing to keep accessible records as required by securities law. Kapur, who was unable to make bail after his arrest, was released on Wednesday after being sentenced by Southern District Judge John Keenan (See Profile) to time served for the one remaining charge. Kapur had faced up to 125 years in prison.
