New York (HedgeCo.Net) – Hamilton Alan Bird, formerly of XL Capital Partners, who headed the scheme that swindled over $7.5 million of investors’ money, has been sentenced to 24 years in prison. The Colorado Springs resident received his fate on Friday, six months after pleading guilty to one count of securities fraud and another count of theft.
According to the original indictment, Bird, along with partners David Edward Newton and Douglas Alan Scott, took money from about 350 individuals and set up their own “personal piggy bank.” From October 2002 to December 2004, the three men withdrew millions of dollars for personal usages including residences and private jets.
While Bird’s felonies only carried a maximum sentence of 12 years, he was eligible to be charged as a habitual criminal, meaning that his sentence could have been three times his maximum.
Newton, in exchange for testifying against Bird and Scott, was sentenced to 15 years probation and 200 hours of community service. Scott, a former Pastor for the now collapsed River of Life Church, was sentenced to 15 years probation and ordered to pay back $1.4 million in restitution.
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