Harvard Liar Pleads Guilty To Hedge Fund Fraud

Dec 13 2012 | 12:49pm 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: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note