Wednesday, 17 September 2014
Last updated 1 hour ago
Sep 16 2013 | 11:10am ET
The self-proclaimed "youngest African-American hedge fund founder in history" has admitted that the title he bestowed upon himself was somewhat misleading.
Frederick Scott on Friday pleaded guilty to charges that he defrauded clients of $1.3 million, bilking them with a story of having risen from homelessness to the hedge fund world, and all before he turned 30 years old. Indeed, little if anything Scott told the victims of his ACI Capital Group was true, including claims that he managed $3.7 billion.
In reality, Scott took the money he was entrusted with and used it to finance a lavish lifestyle, prosecutors said.
Loretta Lynch, the U.S. Attorney in Brooklyn, N.Y., said that Scott "stands revealed as a common thief."
During the hearing, Scott told the presiding judge that he was a high school graduate and that he knew he was making false promises to clients. He faces as long as five years and three months in prison when he is sentenced later this year.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
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