Saturday, 25 June 2016
Last updated 1 day ago
Jun 18 2013 | 10:01am ET
The tipsters who helped federal prosecutors nail hedge fund fraudster Andrey Hicks have been approved for whistleblower payments—should any become available.
The Securities and Exchange Commission said it would award the Hicks whistleblowers 15% of what it can collect from the scam artist, who pleaded guilty to defrauding investors of $2.3 million in December. For the moment, however, the decision amounts to a pat on the back; the SEC hasn't collected a cent from Hicks.
Hicks admitted to lying to investors about his education, his work history and his Locust Offshore Management's assets under management. 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 barely passed the only math class he took. He also falsely claimed that he'd worked for Barclays and that Locust managed $1.2 billion, prosecutors say.
Hicks was sentenced to 40 months in prison.