Colorado Attorney General John Suthers announces the indictments and arrests of three Colorado Springs men. They’re accused of securities fraud and theft, for their involvement in a hedge fund scheme, according to the Attorney General Suthers.
Hamilton Alan Bird, David Edward Newton and Douglas Alan Scott are named in the Grand Jury Indictment.
“These individuals allegedly took the money of hundreds of victims to set up a personal piggy bank,” said Suthers.
They’re accused of defrauding about 350 victims out of approximately $7.5 million. From October 2002 to December 2004, the Attorney General’s office says they withdrew millions of dollars for improper usage including the purchase of a jet airplane, a personal home and other personal expenses.
Suthers says many of the investors in the case entrusted their funds to the defendants because of religious or church connections. Securities Commissioner Fred Joseph says Douglas Alan Scott is a former pastor.
Suthers says investors need to protect themselves by discussing all investments with a financial adviser or accountant, before investing.