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Check out the latest news and insight from the ever-evolving world of institutional investing and hedge funds from around the globe.

Jing Chen has been eVestment’s hedge fund industry news reporter since 2011. To submit industry-related press releases or request feature ideas please contact her at editor@evestment.com

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'Youngest African-American Hedge Fund Founder' Pleads Guilty to Wire Fraud

Sep 15, 2013
Jing Chen

The self-described “youngest African-American hedge fund founder in history” pleaded guilty on Friday to stealing over $1 million from investors.

Financial Advisors reported that 29-year-old Frederick Douglas Scott, the CEO of New York-based ACI Capital Group, 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. He admitted to using the money to fund his own lavish lifestyle.

Scott faces up to 25 years in prison for both charges. He has also been ordered to pay a $1.3 million restitution and a fine equal to double the investors’ losses.

SEC had charged Scott with defrauding investors and falsely claiming his firm’s assets under management to be $3.7 billion to bolster his credibility.

 

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