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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...