Colo. Hedge Fund Fraudster Gets Four More Years For Second Scam

Jul 29 2010 | 12:00pm ET

Hedge fund fraudster Hamilton Bird has had his all-expenses-paid stay at the Kit Carson Correctional Center extended by four years.

Bird, who two years ago pleaded guilty to ripping investors in his XL Capital Partners hedge fund off to the tune of $12 million, earning him a sentence of 24 years in prison, has pleaded guilty once again to defrauding 14 more investors to finance his defense. A Colorado judge sentenced him to four years for that $690,000 scam, to be served when he completes his first sentence.

The Colorado Attorney General dismissed six other counts against Bird in exchange for his guilty plea on the one count of securities fraud. Each of the seven counts was worth up to 12 years in prison.

“It astounds me that this individual would take money from investors knowing that he had already pled guilty to fraud,” Colorado Securities Commissioner Fred Joseph said. “The only thing that could stop him is put him in jail, which is where he is now and will be for quite a while.”

Bird was indicted in March for launching the second scam, called EquityFX, in January 2006, five months before his indictment in the XL case. While promising investors a currency trading strategy, he actually spent more than $250,000 to pay his lawyer in the XL case, and spent some of the rest on furniture and cars.

As part of his guilty plea, Bird has agreed to repay $555,635 to his latest victims.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.