Harvard Liar Pleads Guilty To Hedge Fund Fraud

Dec 13 2012 | 1:49pm ET

Hedge fund fraudster Andrey Hicks pleaded guilty yesterday to defrauding investors of $2.3 million.

Hicks, who was arrested last year in Canada while trying to flee to Switzerland, pleaded guilty to five counts of wire fraud in Boston federal court. He faces up to 20 years in prison when he is sentenced in March.

The 28-year-old Hicks lied to investors about his education, his work history and his Locust Offshore Management's assets under management, prosecutors alleged. According to the indictment, 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.

Prosecutors said Hicks simply stole most of the $2.5 million he raised from clients, much of it from Brooklyn Nets basketball player Kris Humphries.

Hicks' guilty plea—he had previously professed his innocence—comes after a federal judge in March ordered him to pay more than $7.5 million in fines and restitution.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

AIMA: How The U.K.'s SMCR Will Affect U.S. Firms

Jun 20 2017 | 6:29pm ET

U.S. investment managers need to think seriously about how tough new U.K. conduct...

 

From the current issue of