Hicks Whistleblowers Get First (Small) Checks

Sep 4 2013 | 10:56am ET

Three whistleblowers in the Locust Offshore Management case have gotten their first payments for helping bring down the $2.3 million fraud.

The Securities and Exchange Commission announced in June that the three unidentified tipsters would split 15% of the money it collected from Locust founder Andrey Hicks. And having gotten $170,000 of the $7.5 million Hicks owes, the agency has cut three checks for $8,505.

The SEC said it expects eventually to pay the three a total of $125,000.

Hicks admitted to lying to investors about his education, his work history and his firm'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.


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

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. 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.