"Two things are infinite: the universe and human stupidity; and I'm not sure about the universe."
Those were the words that Fredrick Douglas Scott attached to most of the emails sent to the clients of his boutique investment banking and financial advisory firm, ACI Capital. What the clients didn't realize was that the joke was on them, according to federal prosecutors.
In addition to being one of Ebony magazine's "Top 30 under 30" and claiming to be the youngest African-American to found a hedge fund, Fredrick Douglas Scott was a fraudster, according to the criminal complaint filed Monday in U.S. District Court for the Eastern District of New York. The complaint was unsealed Tuesday after Scott was arrested.
In its most recent regulatory filing, ACI claimed to manage $3.7 billion in assets. The FBI said Scott used ACI to execute two related fraudulent schemes in which money wired to the firm by clients was stolen for Scott's personal use.