Hedge Fund Fraudster Federick Scott Sentenced to 5 Years in Prison.
Manhattan hedge fund fraudster Fredrick D. Scott smooth-talked his victims into believing he was the “youngest African-American hedge fund founder in history,” was sentenced 63 months in prison by a federal judge who also blasted the Bureau of Prisons for allowing the con man to teach a course on finance to felllow inmates.
Frederick Douglas Scott’s spiel was one big lie which he continued trying to spin in Brooklyn Federal Court to the incredulous judge.
Scott argued that he was a “nerd,” a “genius,” played the race card and even blamed a victim for lying about her net worth.
Federal Judge Roslynn Mauskopf responded by calling Scott a “narcisstistic, self-promoting predator” who had to be stopped and deterred from victimizing others.
“You continue your con in front of me,” Mauskopf said. “The fact that the Bureau of Prisons allowed a financial fraudster to teach a financial course is a bit mind-boggling.”
U.S. Attorney Roslynn R. Mauskopf, center, appears at an FBI news conference in New York, Saturday, June 2, 2007. Three people were arrested and one other was being sought Saturday in connection to a plan to set off explosives in a fuel line that feeds John F. Kennedy International Airport and runs through residential neighborhoods, officials close to the investigation said.
After Scott tried to continue his con in court, Federal Judge Roslynn Mauskopf called Scott a “narcisstistic, self-promoting predator” who had to be stopped and deterred from victimizing others.
Scott had hired a public relations firm to portray him as a rags-to-riches financial wizard who overcame homelessness to become a millionaire and guest speaker at Rev. Al Sharpton’s National Action Network, and socializing with Knicks basketballl great Patrick Ewing and city Councilman Jumaane Williams.
Ebony magazine proclaimed Scott a top young black entrepreneur. But it was all a sham. Scott was spending money on a mistress, high-end purchases and an upper West Side penthouse until his Ponzi scheme collapsed in 2010.