Kudos to the young brother for having the financial innovation and gumption to become the youngest African-American Hedge Fund Manager. Despite the accomplishment it means nothing if you won’t keep your nose clean.
29 year old, Frederick Douglas Scott, CEO of ACI Capital Group in Manhattan, pleaded guilty to wire fraud conspiracy to steal over $1 million dollars from his investors. This isn’t on the level of Bernie Maddoff, but theft is theft and it carries a heavy consequence.
From Financial Advisor Magazine
A 29-year-old investment advisor who described himself as the “youngest African-American hedge fund founder in history” pleaded guilty today to engaging in a wire fraud conspiracy to steal over $1 million from investors.
Frederick Douglas Scott, CEO of ACI Capital Group in Manhattan, waived indictment and pleaded guilty to wire fraud conspiracy and lying to Securities and Exchange Commission officials who were conducting a regulatory examination of his firm.
The U.S. Attorney’s Office for the Eastern District of New York says Scott faces up to 20 years’ imprisonment on the fraud charge and five years’ imprisonment on the false statement charge. Scott, who registered his firm with the SEC in July 2011, also faces a fine equal to double the investors’ losses, mandatory restitution of $1,338,770 to the victims and forfeiture of assets.
This is an unfortunate case of a young man getting caught up in the fancy, luxury lifestyle many of us grow up and be come infatuated with in this country.
However, instead of legally working hard to get it, Scott decided he was smart enough to hustle some people out of their money. Let this serve as a notice to our young people that crime isn’t worth the aggravation. This young brother could have made a wonderful life for himself and his children had he only stayed on the right side of the investment laws.
This situation reminds me of a quote the great Marcus Garvey is credited with today.
“If the Negro is not careful he will drink in all the poison of modern civilization and die from the effects of it.” ~ Marcus Garvey
We have to encourage our youth and young adults to reach for the stars, but not in an illegal way. There are many ways to make money in this society and have an impact without illegal activity. Perhaps this young brother should have studied the likes of Reginald F.
Lewis and other prominent black men and women in the world of high finance doing it right.
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