Sunday, 26 February 2017
Last updated 1 day ago
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.