Saturday, 2 August 2014
Last updated 11 hours ago
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.