Wednesday, 1 April 2015
Last updated 4 min 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.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…