SEC Charges ACI Capital Group Owner with Defrauding Investors

by InvestorLawyers on October 24, 2013

in Arbitration,New York,SEC,Securities Fraud

Investment fraud lawyers are currently investigating claims on behalf of the victims of securities fraud perpetuated through schemes such as advanced fee scams. Reportedly, the Securities and Exchange Commission (SEC) has filed charges against Frederick D. Scott, a New York money manager. Scott owns ACI Capital Group, an investment advisory firm. According to the SEC, Scott made false claims regarding the company’s assets under management. He allegedly claimed the assets to be $3.7 million so that he would appear more credible when promoting “too good to be true” investment opportunities.

Allegedly, Scott targeted individual investors and small businesses with multiple financial scams. The SEC claims that he promised high rates of return in order to get money from investors and then stole their money. Reportedly, Scott used investor funds to pay his personal expenses, such as private school tuition for his children, department store purchases, air travel, dental bills and hotels, and his clients never received the promised returns.

According to securities arbitration lawyers, one of Scott’s alleged scams was an advanced fee scheme in which investors were told that the firm would give multi-million-dollar loans after a percentage of the loan amount was advanced to the firm. Reportedly, investors were told they would receive the remaining balance after the loan was made but they never received this sum.

Investigators have identified more than $1 million in investor losses caused by Scott to date, FBI officials note. However, there may be more investor losses not yet uncovered by authorities, and customers of Scott are advised to contact an investment fraud lawyer immediately. Scott has pleaded guilty to the charge of stealing over $1 million from investors through a wire fraud scheme, making false statements to examiners for the SEC and other securities fraud allegations.

If your broker or investment advisor promised you returns that you never received, you may have been the victim of securities fraud. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or by e-mail at newcases@investorlawyers.net for a no-cost, confidential consultation.

 

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