Securities Law Blog

The U.S. Attorney for the District of Massachusetts charged Boston-area money manager, Andrey C. Hicks with committing wire fraud, attempting to commit wire fraud, and aiding and abetting wire fraud. The U.S. Attorney’s charges came shortly after a restraining order had been issued by the Court at the request of the SEC.

In its complaint, the SEC alleged that Hicks and his investment advisory firm, Locust Offshore Management LLC made false representations to create an aura of legitimacy when soliciting individuals to invest in a purported billion dollar hedge fund that Hicks controlled called Locust Offshore Fund Ltd. Hicks and his advisory firm allegedly made false claims about his Harvard education and the $16 million “book of business” he grew while working at Barclays Capital. Hicks and his firm falsely claimed that the firm’s quantitative strategies were based on mathematical models that Hicks developed while at Harvard. Hicks reportedly briefly attended Harvard but never graduated after twice being required to withdraw for failing to perform academically, nor is there any record of his employment at Barclays Capital.

Hicks raised at least $1.7 million from several investors through his misrepresentations about his education, work experience, hedge fund’s auditor, prime broker and custodian, and corporate status.