UPDATE: Pastor-Turned-Hedge Fund Booster Convicted Of Fraud

Jan 14 2008 | 1:00am ET

Douglas Scott, the former evangelical pastor accused of luring churchgoers into a bogus hedge fund, has been convicted of fraud for his role in the scam.

A jury took just about four hours to find Scott, the one-time leader of the now-defunct River of Life Church in Colorado Springs, Colo., guilty of securities fraud and theft charges after a one-week trial. He faces up to 24 years in prison when he is sentenced in March.

Scott allegedly made $780,000 in referral fees from XL Capital Partners for recruiting investors for its Vision Fund, without informing investors or potential investors of his financial interest. What’s more, Scott was not a licensed securities broker, according to the Colorado attorney general’s office.

Some 400 investors placed about $24 million with XL and Vision; more than half of it was lost.

Hamilton Bird, who ran XL before authorities shut it down in 2004, is set to go to trial on March 31. David Newton, who also worked at XL, was given probation for his role in the scam.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...