FREDRICKDSCOTT.COM/FREDRICKDSCOTT.COM
Fredrick Scott, skilled in self-promotion, posted photos on his website of himself with Knicks great Patrick Ewing, Brooklyn City Councilman Jumaane Williams and Martin Gruenberg, the chairman of the FDIC. “Fredrick Douglas Scott wanted a place in history, but tried to secure that spot with stolen money rather than honest work,” said Brooklyn U.S. Attorney Loretta Lynch.
A 29-year-old self-proclaimed financial wizard touted as the “youngest African-American hedge fund founder in history” is a fraudster, federal prosecutors said Tuesday.
Fredrick Douglas Scott was arraigned on charges of fleecing investors out of at least $750,000 through several schemes he allegedly spun while billing himself as a manager of a $3.7 billion hedge fund.
“Fredrick Douglas Scott wanted a place in history, but tried to secure that spot with stolen money rather than honest work,” said Brooklyn U.S. Attorney Loretta Lynch.
Scott was represented by a court-appointed lawyer in Brooklyn Federal Court and couldn’t get his story straight about how much he’s worth.
He filled out a financial affidavit claiming his salary is $96,000. Scott then told pretrial services he makes $200,000 but takes home only $50,000 a year, prosecutors said.
Scott’s personal account at TD Bank showed over $700,000 “flowing in and out,” but as of April 30 his ACI Capital Group account was overdrawn by $91.24.
The criminal complaint alleges Scott used the ACI Capital account containing clients’ cash as a personal piggy bank for purchases at Louis Vuitton, the Apple store, True Religion jeans, Tao restaurant, the Hampton Inn SoHo and Dizzy’s Coca Cola Club at Lincoln Center.
Scott was adept at promoting himself, though, posting photos on his website of himself schmoozing with Knicks great Patrick Ewing, Brooklyn City Councilman Jumaane Williams and Martin Gruenberg, the chairman of the FDIC.
He lured one victim of his scam to hear him speak at the Rev. Al Sharpton’s National Action Network conference in March, according to court papers. And he was honored by Ebony magazine in 2010 for making history as one of the nation’s top young black entrepreneurs.
The investors should have run away after reading emails from Scott that typically contained this pearl of wisdom: “Two things are infinite: the universe and human stupidity; and I’m not sure about the universe.”
Scott also claimed he went from being homeless to being a millionaire. A source said the reverse appears to be true — he has been crashing at a friend’s pad in South Orange, N.J., after being evicted from his Manhattan townhouse.
He complained to the judge that he couldn’t understand why his lawyers from the white-shoe firm Wilkie Farr and Gallagher weren’t present on Tuesday. The prosecutor said he received a call from the firm saying they did not intend to represent Scott.
Even Scott’s wife added to the mystery. Scott claims her parents have “Italian diplomatic status,” and he boasted to the FBI that if he got in trouble, she would be his “ace in the hole.”
Magistrate Judge Steven Gold ordered the defendant remanded without bail.
Read more: Daily News
Leave a reply