Investors flee fund after founder's prostitution bust

VIDEO1:1701:17
Busted! Founder of $3 billion hedge fund caught in prostitution sting

Virtually all investors have fled Portland, Oregon-based Common Sense Investment Management following the arrest of founder Jim Bisenius for soliciting a prostitute, sources close to the matter said.

James Allan Bisenius
Source: Washington County Sheriff's Office

Clients have requested to redeem more than 90 percent of the $3.2 billion the fund of hedge funds managed around the time of the arrest in late August, according to three people familiar with the situation.

The redemptions would leave the 22-year-old firm less than $150 million by year-end, assuming no investors change their mind, according to one of the people with direct knowledge of the situation.