Lifestyle

Kim Kardashian's Husband Ripped Off In Hedge Fund Scam

Oct 31 2011 | 8:41am ET

A star basketball player and his reality television icon wife are among the victims of an alleged $1.6 million hedge fund fraud.

Kris Humphries, a free agent who played for the New Jersey Nets last year, invested hundreds of thousands of dollars with Andrey Hicks' Locust Offshore Management. Hicks was arrested on Friday in Canada—authorities say he was on his way to Switzerland to avoid prosecution—days after a federal judge shut Locust down.

Humphries didn't just invest with Hicks. He invited him to his $10 million televised wedding to Kim Kardashian—Hicks can be seen sitting behind the couple during their rehearsal dinner.

"Kris Humphries is the victim of an investment fraud," a spokesman told Us Weekly. "He is working with law enforcement and will not have any further comment until the matter is resolved."

According to the authorities, Hicks, who faces up to 20 years in prison, lied to investors about both himself and Locust. He told clients that he developed Locust's algorithmic systems while studying at Harvard—but he didn't tell them that he flunked out of the school after just three semester, earning a D-minus in the only math class he took. He also told them Locust managed $1.2 billion, about three orders of magnitude off the mark—and even more if "managed" does not include transferring virtually all of the money he raised into bank accounts in his name for his personal use, according to the Securities and Exchange Commission's lawsuit against him.

Hicks has denied any wrongdoing.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.