Saturday, 26 July 2014
Last updated 12 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…