By Svea Herbst-Bayliss
BOSTON, March 19 (Reuters) - Andrey Hicks, who invented an
Ivy League resume and Wall Street credentials to steal $2.3
million from investors for a made-up hedge fund, will spend more
than three years in prison, a judge ordered on Tuesday.
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 sentencing ends one of the more brazen hedge fund frauds
at a time wealthy investors are still reeling from the fallout
of the Bernard Madoff and Allen Stanford investment swindles.
Madoff was arrested in 2008 and is serving a 150-year prison
term for a Ponzi scheme considered to be the biggest financial
fraud in U.S. history, while Stanford is serving a 110-year
Hicks, a college dropout, portrayed himself as an exclusive
hedge fund manager whose investing style relied on mathematical
models he said he developed as a PhD student at Harvard
In reality, Hicks had no degrees from the university and
left after three semesters as an undergraduate, having earned a
barely passing grade of D in the only mathematics course he
took. He also lied about having once managed a hedge fund at
Barclays Capital, the U.S. Attorney's Office in Boston said.
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.
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