In a civil complaint filed in federal court in
"From the firm's inception, ThinkStrategy and Kapur engaged in a pattern of deceptive marketing designed to bolster the purported size, credentials and experience of ThinkStrategy as a hedge fund manager," says the
"Had ThinkStrategy adhered to its stated due diligence standards, and required audited financial statements certified by bona fide accounting firms, it would not have invested detrimentally in those funds," the
Yet other fraudulent statements made by ThinkStrategy: it said that in 2008 it garnered a 22.6 percent return for its Capital Fund-A when it dropped in performance the actual performance dropped by 77.9 percent from the pervious year.
Without admitting or denying the allegations, ThinkStrategy and Kapur consented to the entry of a judgment permanently enjoining them from violating securities regulations. An undisclosed monetary penalty was imposed.
— This article first appeared on Securities Technology Monitor.
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