“>APReuters’ Svea Herbst-Bayliss reports that Andrey Hicks, a fake hedge fund manager who bilked NBA basketball player Kris Humphries and others, has been been sentenced to 40 months in prison.
The judge has also ordered Hicks to pay $2.3 million in restitution.
Hicks, who ran a fake $1 billion dollar AUM Locust Offshore Management, lied about his credentials to investors.
According to a civil complaint from the SEC, he claimed he had both an undergraduate and a PhD degree from Harvard and worked as a successful hedge fund manager at Barclays Capital in the past. He never even finished is undergraduate degree and never worked on Wall Street.
He was able to lure investors by claiming he ran an exclusive hedge fund that used mathematical models he developed during his Harvard PhD program, according to Reuters. The thing his he only took one maths class during his brief undergraduate career and got a D.
What’s more is in 2011, which was a very volatile year for hedge funds in general, he claimed he was up an astonishing 80%. In reality, he didn’t use the money from investors to invest in the fund, but instead used it for his own personal expenses, according to the U.S. Department of Justice.
Late last year, he pleaded guilty to defrauding 10 people of more than $2.3 million.
Hicks sat behind Humphries and Kim Kardashian at their wedding rehearsal dinner. Humphries lost hundreds of thousands of dollars in the investment scheme, according to TMZ.
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