AppId is over the quota
A Massachusetts money manager and his investment advisory firm have been shut down by the Securities and Exchange Commission for his falsely claiming operation of a quant hedge fund.
The SEC on Wednesday alleged that Boston resident Andrey Hicks, 27, through his firm Locust Offshore Management, raised at least $1.7 million from several investors for the purported hedge fund, only to put the money into his personal bank account.
Also in the complaint, the agency alleged that Hicks and his firm misrepresented that the fund had held more than $1.2 billion in assets, Ernst & Young served as the fund’s auditor, Credit Suisse served as the fund’s prime broker and custodian, and the fund was incorporated in the British Virgin Islands.
Furthermore, the SEC alleged that Hicks lied that he worked at Barclays Capital, and graduated from Harvard University.
The SEC going after someone operating a fake hedge fund was the second such action by the agency in the same day. Also on Wednesday, the SEC charged Florida resident Scott Kupersmith in a securities fraud scheme involving a bogus hedge fund.
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