Remember Andrey Hicks? For those who can't keep their founders of fake hedge funds straight, he's the guy who ripped off Kim Kardashian's 72 day husband, Chris Humphries, along with a bunch of other investors in his Locust Offshore Management fund, and in 2011 was arrested and had his assets frozen by the Securities and Exchange Commission, which took issue with the "brazen web of lies" he'd fed people that included:
- The claim he received a Ph.D in Applied Mathematics from Harvard in two years (he neither earned his doctorate from Harvard nor his undergraduate degree and in fact only lasted three semesters in Cambridge, taking a single math course, in which he got a D-).
- The claim that while working at Barclays Capital, he increased his group’s assets under management to $16 billion, despite BarCap having no record of his employment.
- The claim that at Locust, he applied “quantitative strategies based on mathematical models he developed at Harvard”
- The claim that Ernst & Young was the fund’s auditor, Credit Suisse its prime broker and custodian, even though the SEC report was the first either had heard of the guy.
Anyway, he's going to do some time.
U.S. Federal Judge Patti Saris sentenced Hicks, 29, who most recently lived in Massachusetts, to serve 40 months in prison and ordered him to pay $2.3 million in restitution...The money Hicks raised from wealthy clients including National Basketball Association player Kris Humphries, who was briefly married to reality television star Kim Kardashian, was used to pay for personal expenses, according to prosecutors. Hicks fabricated a trumped up investing record at his fake fund, Locust Offshore Management, telling clients that he earned an 80 percent trading profit in 2011. The average hedge fund that year lost about 5 percent. A year ago, under the civil case, a U.S. judge ordered Hicks to pay back more than $7.5 million, the U.S. Securities and Exchange Commission said.