Four years ago I introduced you to Frederick Scott, a fast-talking 25-year-old so-called “financial guru” who had captured the attention of East St. Louis Mayor Alvin Parks Jr. as well as the ESL City Council.
Back then, Scott promised to infuse $30 million into the city’s general fund in exchange for being hired as ESL’s “fiscal manager,” all for the measly sum of $300,000 per year, over three years, for a grand total of $900,000.
Scott also claimed to be the head of ACI Capital Group, LLC, an investment banking and advisory firm with $3.7 billion in assets. Ebony Magazine named Scott to their “Top 30 under 30” list, an honor that Scott made known at every opportunity.
At the time I described him as a cross between the slick-talking Mr. Haney of “Green Acres” TV fame and Ponzi scheme investment fraudster Bernie Madoff, after I discovered that Scott’s credentials were suspect at best.
But that didn’t stop ESL leaders, who voted to give Scott exclusive acquisition and development rights for the ESL riverfront.
Fortunately, the deal with ESL soon ended after Scott failed to move on the riverfront development as promised.
However, that didn’t stop Frederick Scott and his predatory wheeling and dealing. So he took his show on the road.
Today, Scott is behind bars in New York, facing 20 years in federal prison for what is known as an “affinity fraud,” in which people are conned by someone who appears to be one of their own. Bernie Madoff famously ripped off Jewish investors and Scott allegedly ripped off African-American investors.
More specifically, federal prosecutors in New York have received guilty pleas (from Scott) on charges of forgery and wire fraud after he admittedly bilked multiple investors out of approximately one million dollars.
Scott’s undoing was a potential investor who, wisely, became suspicious and reported him to the FBI and the Securities and Exchange Commission.
Why, then, didn’t Mayor Parks (a Morehouse and Washington University grad) not do a better job of vetting Scott and exposing his scheme four years ago?
I maintain that I could have selected any wino from any number of corners in East Boogie and they would have seen right through Scott’s little scheme. Why couldn’t Mayor Parks, the city manager and the ESL City Council?
Parks was recently quoted on this subject in a Riverfront Times article: “I think that it was clear Mr. Scott wanted to be able to get his hands on some money. But I’m not gonna say he was trying to defraud.”
I’ve often questioned Mayor Parks’ judgment, but I think that his reluctance to admit the obvious – that he and his city were nearly bamboozled – speaks volumes about his utter desperation and willingness to believe anything and anyone who promises to magically turn things around in ESL.
As for Frederick Scott, perhaps his penchant for wheeling and dealing and the finer things in life will allow him to negotiate a comfortable existence at Club Fed.
Email: jtingram_1960@yahoo.com; Twitter@JamesTIngram.
