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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note