Alleged Harvard Liar Indicted In Hedge Fraud

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.


In Depth

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of