Frederick Douglas Scott, chief executive of , which on Friday said he had defrauded investors and falsely claimed his assets under management were $3.7 billion to bolster his credibility when offering too-good-to-be-true investment opportunities.

In the SEC filings, the regulator said that Scott paid no returns to investors and used their money to fund such personal expenses as his children’s private school tuition, air travel and hotels, department store purchases, and several thousand dollars in dental bills.