Thursday, 31 July 2014
Last updated 4 hours 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…