Yoomi Lee | Bloomberg LawSEC v. Hicks, No. 11-CV-11888 (D. Mass. filed Oct. 26, 2011); SEC Press Release No. PR-2011-225 (Oct. 26, 2011) The Securities and Exchange Commission (SEC) obtained an asset freeze against Andrey C. Hicks and his purported quantitative hedge fund, Locust Offshore Management, LLC (LOM and together, Defendants) in connection with the fraudulent offer and sale of shares in a sham British Virgin Islands (BVI) incorporated pooled investment fund, Locust Offshore Fund, Ltd (Locust Fund). LOM is purported to be the sole manager of the Locust Fund. The SEC charges Defendants with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The SEC seeks permanent injunctions against Defendants, disgorgement, and payment of civil monetary penalties. Additionally, the SEC seeks disgorgement from the Locust Fund, which is named as a relief defendant.
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