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: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note