Monday, 1 September 2014
Last updated 3 days ago
Dec 8 2011 | 11:46am ET
Accused hedge fund fraudster Andrey Hicks was formally indicted yesterday for ripping investors off to the tune of more than $2.5 million.
A federal grand jury returned a five-count wire fraud indictment against the 27-year-old head of Locust Offshore Management. Hicks is accused of lying to investors both about his own education and work history and Locust's assets under management. Once he had received the $2.5 million from about 10 investors, Hicks used it on himself, rather than investing it, prosecutors allege.
Hicks was arrested in October in Canada, allegedly on his way to Switzerland to avoid prosecution. He has denied any wrongdoing.
According to the indictment, Hicks told clients that he developed Locust's algorithmic systems while studying at Harvard University, but failed to mention that he flunked out after three semesters and only barely passed the only math class he took. He also falsely claimed to have worked for Barclays and that Locust managed $1.2 billion, prosecutors say.
The indictment also gives a clue about Hicks' largest alleged victim. According to the document, a certain "K.H." from Minnesota wired Hicks $617,000, about one-quarter of the total he allegedly raised. Kris Humphries, the National Basketball League player and soon to be former husband of reality television star Kim Kardashian, is a native Minnesotan and has already admitted that he was a victim of Hicks.
If convicted, Hicks faces up to 20 years in prison and $1.25 million in fines.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...