Boston-Area Man Indicted In Alleged Hedge Fund Investment Scheme
Andrey C. Hicks, owner of Locust Offshore Management LLC. has been indicted on federal fraud charges in connection to an alleged $2.5 million investment scheme involving a purportedly billion-dollar hedge fund, Locust Offshore Fund, Ltd (Locust Fund). Authorities say at least nine individual investors and two companies were defrauded in the scheme.
Hicks is accused of luring investors to invest in his hedge fund scheme by misrepresenting his experience, his background, and the specifics of the hedge fund. In particular, the indictment alleges that Hicks told investors that he held undergraduate and graduate degrees from Harvard University, and that he had experience managing billions of dollars in assets for Barclays Capital. He allegedly also told investors that Locust Fund managed over a billion dollars in customer assets, and earned nearly 80 percent profit in 2011.
According to the indictment, none of Hicks’ statements was true. Hicks is further accused of misappropriating the vast majority of investor funds and using the money for his personal purposes. The SEC filed similar charges against Hicks and his companies in October. A federal judge subsequently ordered a temporary freeze on Hicks’ assets, as well as the assets of his firm and of Locust Fund. If convicted, Hicks could serve up to 20 years in prison.