Hicks, Accused Of Fraud, Barred

Jun 19 2012 | 12:35pm ET

Accused hedge fund fraudster Andrey Hicks has been barred from the securities industry for allegedly ripping clients off to the tune of $2.5 million.

Hicks, who is awaiting trial on criminal fraud charges, was forbidden by the Securities and Exchange Commission from associating with investment advisers, broker-dealers and ratings agencies, among others. The ban comes three months after a federal judge ordered Hicks to pay $7.5 million in restitution and fines at the SEC's request.

Hicks did not oppose the bar; the SEC said he did not meet a May 18 deadline to explain why he shouldn't be so sanctioned.

According to prosecutors, Hicks told clients that he developed Locust Offshore Management'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.

Hicks was arrested in Canada last year trying to flee to Switzerland. If convicted of the wire fraud charges, he faces up to 20 years in prison


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.