Skip to main content

Securities And Exchange Commission Not Amused By Hedge Fund Manager's "Web Of Lies"

  • Author:
  • Updated:

Yesterday afternoon, the Securities and Exchange Commission announced that it had frozen the assets of "purported" Boston-based quant named Andrey C. Hicks. Purported because, was he actually a quant? Not so much! Other small inaccuracies in his story with which the regulator took issue, describing the total as Hicks' "brazen web of lies":

* The claim that Hicks received his Ph.D in Applied Mathematics from Harvard in two years (2005-2007). This is a thing that did not happen, most likely on account of the fact that Hicks, who also claimed he received an undergraduate degree from Harvard in 2005, after having earned a grade point average of 4.0, natch, was asked to leave the school after three semesters, during which he took one math course, in which he received a D-.

* The claim that he took a job at Barclays Capital after graduating, where he, in just over a year, he "grew his book nearly two-fold and expanded his group's assets under management to roughly $16 billion." (For its part, BarCap says they've never heard of the guy.)

* The claim that following his time at Barclays, he decided to apply "quantitative strategies based on mathematical models he developed at Harvard" (i.e. the place his math skills didn't exactly shine) at a shop of his founding, Locust Offshore Management LLC

* The claim that Ernst & Young was the fund's auditor, while Credit Suisse served as its prime broker and custodian (like Barclays, neither E&Y nor Credit Suisse have ever heard of Hicks)

* The claim that Locust's assets under management clocked in at approximately $1.2 billion. In fact, they were more in the ballpark of $1.7 million.

In related news, it appears that Kim Kardashian, who Hicks seems to know through her husband, dodged a bullet on this one.

SEC Halts Fraud by Purported Quant Hedge Fund Manager [SEC via BI]
@andreyhicks [Twitter]


Securities And Exchange Commission Still Hung Up About The Time Phil Falcone Borrowed Money From A Gated Fund To Pay Personal Taxes

Remember the time Harbinger Capital Partners founder Phil Falcone was a little short on cash, and decided to "borrow" $113 million from a fund in which redemptions had been suspended in order to pay personal taxes? Unfortunately for Big P, the SEC does. (The regulator also recalls he time he allegedly played favorites with Goldman and allegedly manipulated some markets.) Philip Falcone, the billionaire founder of Harbinger Capital Partners LLC, faces a lawsuit from U.S. regulators as soon as this week over claims he improperly borrowed client funds to pay his taxes and gave preferential treatment to Goldman Sachs Group Inc., according to two people familiar with the matter. Falcone, 49, may also face a market manipulation claim related to trading in bonds of MAAX Holdings Inc., said the people, who asked not to be identified because the matter isn’t public. The Securities and Exchange Commission voted to authorize enforcement staff to file the case, the people said. While perhaps not the best news Falcone has received in a while, it likely does not come as a surprise, as the SEC has been talking about the aforementioned offenses since last December (when they tried to get him banned from the securities industry). Either way, Phil, who should probably just not going home tonight unless he wants an earful, is planning to "contest to the suit." SEC Said To Authorize Lawsuit Against Harbinger’s Falcone [Bloomberg]

Not a Visium employee but could be. (Getty)

Liquidating Hedge Fund Not The Best Source Of Job Security

Visium Asset Management is preparing to say some tough good-byes.