Hicks, Accused Of Fraud, Hit With Fines

Mar 23 2012 | 12:27pm ET

Accused hedge fund fraudster Andrey Hicks was ordered to pay more than $7.5 million, three times the amount he allegedly defrauded investors.

Hicks, who was arrested in Canada last year trying to flee to Switzerland and who was indicted for wire fraud in December, was hit with a $2.5 million fine by U.S. District Judge Richard Stearns, as part of a lawsuit filed by the Securities and Exchange Commission. Hicks' hedge fund, Locust Offshore Management, was fined the same amount, and Hicks was ordered to pay $2.5 million in restitution—plus interest.

According to prosecutors, 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.

Hicks' largest alleged victim is Kris Humphries, who plays for basketball's New Jersey Nets, but who is perhaps best-known for his very short-lived marriage to reality television star Kim Kardashian. He allegedly lost about $617,000.

If convicted of the criminal charges, Hicks faces up to 20 years in prison.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note